Question
how would i answer this question: Easy rentals ltd received 4 months rent in advance from tenants on 1 april 2015. the entire amount of
how would i answer this question:
Easy rentals ltd received 4 months rent in advance from tenants on 1 april 2015. the entire amount of $6400 was credited to the unearned revenue account at this date. ignore GST
a. give the adjusting entry at 30june 2015
b. what amount (if any) should be reported in the balance sheet at 30 june 2015?
c. if no adjusting entry were made on 30 june, by how much would profit be overstated or understated? would liabilities be overstated or understated? explain
d. what would your adjusting entry be in requirement A if the amount of $6400 had been credited to rental revenue on april 1st 2015?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started