a. On May. 1, a business collected $14,400 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was payi account for the amount of rent it has earned. a. On May. 1 , a business collected $14,400 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was payin account for the amniunt of wint it hine n.e.s. Considet the solowing independent stuations at Decomber 31 . Yerithe situshons. iRocord debits fist, then credis. select the explanation on the last line of the jumal entry toble) account for the amount of rent it has eamed. On May 1 , a business collected $14,400 rent in advance, debiting Cash and crediting Unearned Revenue. The te ccount for the a Independent Situations a. On May 1, a business collected $14,400 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned. b. The unadjusted balance of the Supplies account is $2,200. Supplies on hand total $800. c. The business purchased equipment on September 1 at a cost of $35,400 with expected useful life of four years. The residual value of the equipment is $1,800. d. The business receives $15,000 on October 1 for 10 -month service contract for the period October 1 through July 31. (When the cash was received on October 1 , assume that a liability account was credited. Assume services are performed evenly each month throughout the term of the contract.) e. On November 1, when the business prepaid $1,200 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash