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Unearned Rent Revenue First American Property Management leases commercial properties and expects its clients to pay rent on a monthly basis. A new client signs
Unearned Rent Revenue First American Property Management leases commercial properties and expects its clients to pay rent on a monthly basis. A new client signs a 3-year lease with a yearly rent of $285,000 and agrees to pay the first 3 months in advance. Required: 1. Make the journal entry to record the customer's prepayment of 3 months' rent. If an amount box does not require an entry, leave it blank. 88 (Record Record prepayment of rent) 2. Make the journal entry to record the necessary adjusting entry after 1 month has passed. If an amount box does not require an entry, leave it blank. (Record recognition of rent revenue)
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