Question
Unearned Rent Revenue EWO Property Management leases commercial properties. A new client signs a 3-year lease and agrees to pay the first 2 months in
Unearned Rent Revenue
EWO Property Management leases commercial properties. A new client signs a 3-year lease and agrees to pay the first 2 months in advance. The monthly rent is $85,000.
Required:
Prepare the journal entry to record (1) the customers' prepayment of 2 months' rent and (2) the necessary adjusting entry after 1 month has passed.
| (1) | Cash | ||
| Unearned Rent Revenue | |||
| (Record cash received for rent paid in advance) | |||
| (2) | Unearned Rent Revenue | ||
| Rent Revenue | |||
| (Record revenue) |
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
Laboratory Auditing For Quality And Regulatory Compliance
Authors: Donald C. Singer, Raluca-Ioana Stefan, Jacobus F. Van Staden
1st Edition
0367392461, 978-0367392468
