Question
Hi.PLEASE need help to answer these tow questions about Bookkeeping 1-On September 1, your calendar year company rents a machine to another firm for $24,000
Hi.PLEASE need help to answer these tow questions about Bookkeeping
1-On September 1, your calendar year company rents a machine to another firm for $24,000 a year. As of December 31, $15,000 has been received and recorded in Unearned Rent Revenue. If your company uses the accrual basis, what adjusting entry do you record at year end?
debit Unearned Rent Revenuefor $7,000; creditRent Revenue for$7,000
debit Rent Revenue for$7,000; creditUnearned Rent Revenue for$7,000
debit Rent Revenue for$8,000; creditUnearned Rent Revenue for $8,000
debit Unearned Rent Revenue for$8,000; creditRent Revenue for$8,000
debit Rent Revenue for $9,000; credit Unearned Rent Revenue for $9,000
debit Unearned Rent Revenue for $9,000; credit Rent Revenue for $9,000
2-On October 1, your company receives a $75,000 advance for 1 year's rent that you record in Unearned Rent Revenue. If your company uses the calendar year and the accrual basis, what adjusting entry will you record on December 31?
debit Unearned Rent Revenue for$56,250; creditRent Revenue for$56,250
debit Rent Revenuefor$56,250; creditUnearned Rent Revenue for$56,250
debit Unearned Rent Revenue for$18,750; creditRent Revenuefor$18,750
debit Rent Revenuefor $18,750; creditUnearned Rent Revenue for$18,750
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