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Help Save & Exit Su Check my wo For each separate case below, follow the three-step process for adjusting the accrued revenue account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year a. Unearned Rent Revenue. The Krug Company collected $13,200 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 November 1 Step 1: Determine what the current account balance equals Debitor Credit 13.200 Credit $ Unearned rent revenue 13.200 13.200 o Step 2: Determine what the current account balance should equal Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Unearned rent revenue Rent revenue 1.100 b. Unearned Services Revenue. The company charges $135 per month to spray a house for insects. A customer paid $540 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 Debitor Credit ? Unearned services revenue MacBook Pro b. Unearned Services Revenue. The company charges 5135 per month to spray a house for insects. A customer paid 5540 on October 1 in advance for four treatments, which was recorded with a debit to Cash and a credit to Uneared Services Revenue A! year-end, the company has applied three treatments for the customer Step 1: Determine what the current account balance equals Debitor Credit? 540 Credit Unearned services revenue Step 2: Determine what the current account balance should equal $ 540 $ 540 Credit 5401 540 Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 Adjusting Entry Uneamed services revenue Services revenue Debit Credit Unearned Rent Revenue On September 1, a client paid the company 538.400 cash for six months of rent in advance the client leased a building and took occupancy immediately). The company recorded the cash as Unearned Rent Revenue 540 Step 1: Determine what the current account balance equals Debitor Credit? 38.400 Credit Uneamedrent revenue $ Step 2 Determine what the current account balance should equal 38 400 5 38.400 Credit Step 3 Record the December 31 austing entry to get from step 1 to step 2 Adjusting Entry Uneamedrent revenue Debit 38,400 Credit Prev 3 of 8 Next >