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Item1 Item 1 QS 3-10 Unearned (deferred) revenues adjustments LO P2 Record adjusting journal entries for each of the following for year ended December 31.
Item1
Item 1
QS 3-10 Unearned (deferred) revenues adjustments LO P2
Record adjusting journal entries for each of the following for year ended December 31. Assume no other adjusting entries are made during the year.
- Unearned Rent Revenue. The Krug Company collected $12,000 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.
- Unearned Services Revenue. The company charges $125 per insect treatment. A customer paid $500 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.
- Unearned Rent Revenue. On September 1, a client paid the company $36,000 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.
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