Question

On June 1, 2021, XYZ rented a warehouse from ABC Company for $3,000 per month, paying $30,000 in advance. Copy the entire question(1, 2 and 3) along with the tables below to answer in the same format 1.) Prepare the adjusting entry for XYZ on 12/31/21 if the original entry was recorded to a temporary account and no additional entries have been made for the year associated with this transaction. (3 pts) 2.) Prepare the adjusting entry for XYZ on 12/31/21 if the original entry was recorded to a permanent account and no additional entries have been made for the year associated with this transaction. (3 pts) 3.) Prepare the adjusting entry if the unadjusted trial balance for ABC as of 12/31/21 shows a balance of $8,000 in unearned rent revenue. If no adjusting entry is required, write no entry required. (4 pts) I

Answer 1

The answer has been present in the supporting sheet. For detailed answer refr to the supporting sheet. For detailed answer refer to the supporting sheet.

E 1 Answer 2 3 Part 1) 4 Date Account Title 5 31/12/21. Prepaid Rent 6 Rent expense (3000*3) 7 To record prepaid rent) 8 Debit Credit 9000 9000 9 Debit Credit 21000 21000 10 Date Account Title 11 31/12/21. rent expense (3000*7) 12 Prepaid Rent 13 (To record prepaid rent) 14 15 16 17 Date Account Title 18 31/12/21. Rent Revenue 19 Unearned Rent Revenue (3000*3)-8000) 20 (To adjust unearned Rent Revenue) 21 Debit Credit 1000 1000 22 23