ADVANCE COLLECTIONS RECORDED IN BALANCE SHEET ACCOUNTS.

Intercity Transportation rents buses to community groups for single- and multiple-day trips. Some groups pay in advance for these trips and some pay after. For 19x4 the following data were available:

During 19x4 Intercity received $732,680 cash for transportation activities, crediting the entire amount to the unearned rental revenue account. The cash received included $48,100 receivable at January 1 and the $91,230 that applies to 19x5 and is unearned at December 31, 19x4.
REQUIRED:
1. Determine the amount of revenue earned in 19x4.
2. Prepare the adjusting entry necessary to state properly the revenue, accounts receivable, and unearned rental revenue accounts.

Transcribed Image Text:

1/1/x4 12/31/x4 Accounts receivable Unearned revenue $48,100 $31,300 84,810 91,230