Indicate na to advertising in its Amount atori Fashion Sup Inc Problem Set #1: Course Outline #2 and #4 Page 11 of 19 Scenario #5: Rent Revenue (10 points) The Geraldine Material Distributing Co. rents the third floor of its sales office building in downtown Providence to tenant for $15,000 per month under a lease arrangement that expires on May 31, 2020. In its balance sheet at December 31, 2019, Geraldine Material Distributing Co. reported a balance of $15,000 as the amount receivable for rent due from Slusz Travel Services for December 2019. On June 1, 2020, Geraldine Material Distributing Co. and Slusz Travel Services agreed to a new, one- year lease at a rate of $17,500 per month. The lease begins on June 1, 2020 and expires on May 31, 2021. During 2020, Geraldine Material Distributing Co. received cash $177,500 for rent from Slusz Travel Services that included: $15,000 for rent from December 2019 $75,000 for rent from January 1, 2020 through May 31, 2020 $87,500 as a partial payment of the rent due since June 1, 2020 The bookkeeper recorded the cash received during 2020 as Rent Revenue. a. Prepare the necessary adjustment for rent at December 31, 2020 in general journal form. Post the adjusting entry to the T-accounts provided below and compute their resulting balances at December 31, 2020 after adjustment. (4 points entry + 2 points for posting/balance) DATE ACCOUNT NAMES DEBIT CREDIT (atnog stron unos Forno yiqquz notes noem osos I Trossid on balss van ons er to save SUPPORTING CALCULATION REQUIRED: Vallos villano 020, eros vobis OSOS DENT doo usos morts Osvom bing SOCO douaut) OSOsist montov 002, eros Abis OSOS A bisa io vitae OSOSCE doo OSOS monil ISOSTEEN OSOS monto Rent Receivable 15,000 Rent Revenue 12/31 2019 1/1 2020 Rec'd in 2020 177,500 ant Thomson ISO T NA 'S Problem Set #1: Course Outline #2 and #4 Page 12 of 19 b. Indicate the items and their amounts that Geraldine Material Distributing Co. should have wariwo ni o reported relative to the leases in its 2020 GAAP financial statements. (Ignore cash.) OSOSIC (4 points) Thomson116 9250l s obou S 000 Income Statement for the year ended December 31, 2020: Amount owen 501 b95105 sive 1957T szula boso ondodhila ishManiOSSAL DE VSM no siaxe bhs OSOS Donut no enioed eacalantom 2018 is 5157T seule mont dot 101 002.raso beviset. onidudinaid IsoisM sabit OSOS nuo Amount Balance Sheet at December 31, 2020: eros 1999 monia B1 OSOS DE VEM Nguoid OSOS, Vun moting 101000e Osos 1 snut eonia eubner add to Shomysg Isisa 5 2500 o lomuot 1579ao ni OSOS I vedmed 5 199 101 nemesis 7152233n end 3169979 nutar is samo bis woled bsblvord enuopos-Tort of yung pabeibs 3 1209 Semteulbs 9 OSOS te verse is agons 160 Consistorinio Expense (12 points)
