On November 1, 2016, Gordon Co. collected $6,060 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2017, at which time the contract may be renewed.

a-1. Use the horizontal model to record the effect of the six months of rent collected in advance on November 1, 2016 for Gordon Co. (Use amounts with + for increases and amounts with for decreases.)

a-2. Use the horizontal model to record the effect of the adjustment that will be made at the end of each month to show the amount of rent "earned" during the month for Gordon Co. (Use amounts with + for increases and amounts with for decreases.)

Balance Sheet

Income Statement

Assets

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Liabilities

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Stockholders Equity

Net Income

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Revenues

Expenses

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+

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