Question

Suppose a customer rents a vehicle for three months from Commodores Rental on November 1, paying $5,700 ($1,900/month).

Required:

• 1.&2. Record the necessary entries in the Journal Entry Worksheet below.

• 3. Calculate the year-end adjusted balances of the Deferred Revenue and Service Revenue accounts (assuming the balance of Deferred Revenue at the beginning of the year is $0).

Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the vehicle rental from Commodores Rental on November 1. Note: Enter debits before credits. Credit Date General Journal November Cash 01 Service Revenue ue Debit 5,700 5,700 Record entry Clear entry View general journal

Answer 1

Date	General Journal	Debit	Credit
November 01	Cash	5700
	Deferred Revenue		5700
December 31	Deferred Revenue	3800		=1900*2
	Service Revenue		3800
	3
		Ending balance
	Deferred Revenue	1900	=5700-3800
	Service Revenue	3800