XYZ Company collected $100,000 in advance for services to be performed over the next 12 months. Prepare the journal entry.

The journal entry to record the collection of $100,000 in advance for services to be performed over the next 12 months would be as follows:

Date: [Date of transaction]

Cash (or Accounts Receivable) $100,000
Unearned Revenue $100,000

Explanation:
To record the collection of $100,000 in advance for services to be performed over the next 12 months. The cash (or accounts receivable) account is debited to increase the asset account, while the unearned revenue account is credited to increase the liability account.

Debit: Cash $100,000
Credit: Unearned Revenue $100,000