Scenario 3:

Unearned Revenue: The company collected $24,000 rent in advance on September 1, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months rent in advance and occupancy began September 1. Answer the four questions below as of 12/31. Whenever you see the word "unearned, it always indicates a liability account. Most liability accounts include the word "payable, as those liabilities will be paid back. An unearned account is a liability that will be worked off, rather than paid off.

1. The beginning balance of Unearned Revenue: (5 pts)

2. The amount to be adjusted (show your calculation): (5 pts)

3. The ending balance of the account after the adjustment (show your calculation): (5 pts)

4. Adjusting Journal Entry (please include description): (10 pts)

Date	Account	Debit	Credit