On January 1, a property management company received $45,000 for a tenants prepayment of rent for the next 9 months (i.e., for the period January 1 through September 30).

a. Show the financial statement effects of the amount received in advance on January 1. If an item is not impacted, select no net change.

Balance Sheet		Income Statement
Assets	=	Liabilities	+	Equity		Net Income
[ Select ] ["Decreases by $45,000", "Decreases by $5,000", "No net change", "Increases by $45,000", "Increases by $5,000"]		[ Select ] ["Decreases by $45,000", "Increases by $45,000", "Increases by $5,000", "Decreases by $5,000", "No net change"]		[ Select ] ["No net change", "Increases by $45,000", "Decreases by $45,000", "Decreases by $5,000", "Increases by $5,000"]		[ Select ] ["Decreases by $5,000", "No net change", "Increases by $45,000", "Increases by $5,000", "Decreases by $45,000"]

b. Show the financial statement effects of the January 31 adjustment for revenue earned during January. If an item is not impacted, select no net change.

Balance Sheet		Income Statement
Assets	=	Liabilities	+	Equity		Net Income
[ Select ] ["Decreases by $5,000", "Increases by $45,000", "Increases by $5,000", "No net change", "Decreases by $45,000"]		[ Select ] ["Increases by $5,000", "Decreases by $5,000", "Increases by $45,000", "Decreases by $45,000", "No net change"]		[ Select ] ["Increases by $45,000", "No net change", "Increases by $5,000", "Decreases by $5,000", "Decreases by $45,000"]		[ Select ] ["Increases by $5,000", "No net change", "Decreases by $5,000", "Decreases by $45,000", "Increases by $45,000"]