Kurtz Rentals rents equipment to Ditka on February 1. Lease terms require Ditka to make payments...
Kurtz Rentals rents equipment to Ditka on February 1. Lease terms require Ditka to make payments to Kurtz of $2000 each quarter: April 30, July 31, October 31, and January 31. Kurtz receives payments for April, July, and October.
1. What journal entry should Kurtz record on December 31?
Homework Answers
| Date | Accounts titles and explanation | Debit | Credit |
| December 31 | Accrued Rent receivable | $1,333.33 | |
| ... Rent income | $1,333.33 | ||
| (To record the accrued rent) | |||
Working Notes
Accrued Rent receivable = $2,000 * (2/3)
= $1,333.33
2 months accrued rent (November, December)
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