Question
Natsu Company's annual accounting period ends on October 31, 2019. The following information concerns the adjusting entries that need to be recorded as of that
Natsu Company's annual accounting period ends on October 31, 2019. The following information concerns the adjusting entries that need to be recorded as of that date. Entries can draw from the following partial chart of accounts: Cash; Rent Receivable; Office Supplies; Prepaid Insurance; Building; Accumulated DepreciationBuilding; Salaries Payable; Unearned Rent; Rent Earned; Salaries Expense; Office Supplies Expense; Insurance Expense; and Depreciation ExpenseBuilding.
On September 1, the company rented space to another tenant for $725 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account.
Would I debit cash for 3625 and credit unearned rent for 3625?
I got the number by multiplying 725 by 5
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