Valentine, Inc., is preparing its December 31 financial statements for the current year. On December 1, the company received a \($2,100.00\) rent payment from Owens & Nolen, LLP. The payment is the \($700.00\) per month rent for December of the current year through February of the next year. Valentine initially records rent receipts as revenue. General journal pages are provided in the Working Papers. Your instructor will guide you through the following examples.

1. Journalize the adjusting entry for unearned rent. Use page 13 of a general journal.

2. Journalize the reversing entry for unearned rent. Use page 14 of a general journal.

Valentine, Inc., has two notes receivable outstanding on December 31 oft he current year.

3. Journalize the adjusting entry for accrued interest income. Use page 13 of a general journal.

4. Journalize the reversing entry for accrued interest income. Use page 14 of a general journal.

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Note No. 14 15 Interest Rate 15% Term 60 days 16% 60 days Principal $2,000.00 $3,000.00 Date November 14 December 6