Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Unearned Revenue A rental company owns a building from which it leases out multiple offices. During the year, it received the following advance rental payments

Unearned Revenue A rental company owns a building from which it leases out multiple offices. During the year, it received the following advance rental payments for one-year leases from separate tenants: $24,000 in June, $36,000 in August, and $12,000 in October. The leases started the first of the month following the payment. Assume that these are the only advance rental payments received and that no adjusting entries were made during the year.


a. Find the balance of the unearned rent revenue account at year-end on December 31.
Also, find the amount of the adjustment needed at year-end

b. Journalize the adjusting entry to record the revenue earned.

Step by Step Solution

3.52 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

a Month of Effective Advance Lease Rent per Total no Months Rent... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Canadian Income Taxation Planning And Decision Making

Authors: Joan Kitunen, William Buckwold

17th Edition 2014-2015 Version

1259094332, 978-1259094330

More Books

Students also viewed these Accounting questions

Question

corperate failure prediction replicate Appiah 2011

Answered: 1 week ago