Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Bonita Industries received $17200 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account.

Bonita Industries received $17200 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2020 adjusting entry is

A. debit Unearned Rent Revenue and credit Rent Revenue, $12900.

B. debit Rent Revenue and credit Unearned Rent Revenue, $12900.

C. debit Rent Revenue and credit Unearned Rent Revenue, $4300.

D. debit Unearned Rent Revenue and credit Rent Revenue, $4300.

I know the math is either C or D but I'm not sure whether to debit rent revenue or debit unearned rent revenue.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

How can an auditor ensure that adequate cash controls are in place?

Answered: 1 week ago