On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the...
On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the months of June, July, August, and September, was received in cash from the company’s tenant.
The journal entry to record the effects of the four months of rent collected in advance on June 1, 2019 is:
a. Dr.Cash 8,400 /Cr.Rent Revenue 8,400
b. Dr.Cash 8,400/ Cr.Unearned Rent Revenue 8,400
c. Dr.Unearned Rent Revenue 6,300/ Cr.Rent Revenue 6,300
d. Dr.Unearned Rent Revenue 2,100 /Cr.Rent Revenue 2,100
Homework Answers
Answer: b. Dr.Cash 8,400/ Cr.Unearned Rent Revenue 8,400
Explanation
Rent is collected in advance on June 1, 2019 hence, cash will be increased and debited and Unearned Rent Revenue account will be increased and credited because the cash is received for four-month rent.
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On June 1, 2019, an advance rent payment of $8,400, representing
a four-month prepayment for the...
On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the...
On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the months of June, July, August, and September, was received in cash from the company’s tenant. The adjusting entry that will be made at the end of each month to show the amount of rent “earned” during the month is: a. Dr.Unearned Rent Revenue 2,100/ Cr.Rent Revenue 2,100 b. Dr.Cash 2,100 /Cr.Rent Revenue 2,100 c. Dr.Unearned Rent Revenue 6,300/ Cr.Rent Revenue 6,300 d. Dr.Cash 8,400...
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please do question 3
Exercise 3-49 (Algorithmic) Prepayments, Collections in Advance Greensboro Properties Inc. owns a building in which it leases office space to small businesses and professionals. During 2019, Greensboro Properties engaged in the following transactions: a. On March 1, Greensboro Properties paid $9,240 in advance to Patterson Insurance Company for 1 year of insurance beginning March 1, 2019. The full amount of the prepayment was debited to prepaid insurance, b. On May 1, Greensboro Properties received $32,280 for...
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