On December 1, 2016, an advance rent payment of $13,200, representing a three-month prepayment for the months of December, January, and February, was received in cash from the companys tenant.

Required:

Complete the below table. (Use amounts with + for increases and amounts with for decreases.)

Use the horizontal model to record the effects of the following items:

a. The three months of rent collected in advance on December 1, 2016.

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders Equity

Net income

=

Revenues

-

Expenses

=

+

=

-

b. The adjustment that will be made at the end of each month to show the amount of rent "earned" during the month.

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders Equity

Net income

=

Revenues

-

Expenses

=

+

=

-