Solved:
Answered by AI, Verified by Human Experts
On november 1, the company rented space to another tenant. A check in the amount of $9,000, representing three months' rent in advance, was received from the tenant on that date. The payment was recorded with a credit to the unearned rent revenue account. Complete the necessary adjusting entry for december 31 by selecting the account names and dollar amounts from the drop-down menus.
On november 1, the company rented space to another tenant. A check in the amount of $9,000, representing three months' rent in advance, was received from the tenant on that date. The payment was recorded with a credit to the unearned rent revenue account. Complete the necessary adjusting entry for december 31 by selecting the account names and dollar amounts from the drop-down menus.
Adjusting entry to record the Rent revenue:It is given that on November 1, the company rented space to another tenant. A check in the amount of $9,000, representing three months' rent in advance, was received from the tenant on that date. The payment was recorded with a credit to the unearned rent revenue account.Now on December 31, we need to prepare the adjusting entry to record the Rent Revenue for the period (Nov. 1 to Dec. 31) that is two months. The Rent Revenue for two months shall be 9000*2/3 = $6,000Hence the adjusting entry to record the Rent revenue shall be as follows:Unearned Rent Revenue Debit $6,000Rent Revenue Credit $6,000(being the adjustment made for Rent Revenue earned)...