Assume no other adjusting entries are made during the year.

a$.$ Unearned Rent Revenue. The Krug Company collected $$10,800$ rent in advance on November $1,$ debiting Cash and crediting Unearned Rent Revenue. The tenant was paying $12$ months' rent in advance and occupancy began on November $1.$

b$.$ Unearned Services Revenue. The company charges $$115$ per insect treatment. A customer paid $$460$ on October $1$ in advance for four treatments, which was recorded with a debit to Cash and a credit to Unearned Services Revenue. At year$-$end, the company has applied three treatments for the customer.

c$.$ Unearned Rent Revenue. On September $1,$ a client paid the company $$33,600$ cash for six months of rent in advance and took occupancy immediately. The company recorded the cash as Unearned Rent Revenue.

Journal entry worksheet

References