On September 1, Young Company received $38,100 for six months of rent in advance. 1. How much would be recognized as rent revenue by the end of the year? 2. How much will be in the Deferred Rent Revenue account by the end of the year, after the adjusting entries have been prepared and posted?
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On September 1, Young Company received $38,100 for six months of rent in advance.
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- If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?On August 1, Mitchell Company received $21,900 for six months of rent in advance. Required: 1. How much would be recognized as rent revenue by the end of the year? 2. How much will be in the Deferred Rent Revenue account by the end of the year, after the adjusting entries have been prepared and posted?the krug company collected $16800 in rent in advance on november 1, debiting cash and crediting unearned rent revenue. the tenant was paying 12 months rent in advance and occupancy began on nove1
- On December 1, 2019, an advance rent payment of $25,800, representing a three-month prepayment for the months of December, January, and February, was received in cash from the company’s tenant. Required: Use the horizontal model (or write the journal entries) to record the effects of the following items: a. The three months of rent collected in advance on December 1, 2019. b. The adjustment that will be made at the end of each month to show the amount of rent “earned” during the month.The balance in the prepaid rent account before adjustment at the end of the year is $11,940, which represents 12 months' rent paid on December 1. The adjusting entry required on December 31 isThe balance in the prepaid rent account before adjustment at the end of the year is $11,940, which represents 12 months' rent paid on December 1. The adjusting entry required on December 31 is a-debit Rent Expense, $10,945, credit Prepaid Rent, $995 b-debit Rent Expense, $995, credit Prepaid Rent, $995 c-debit Prepaid Rent, $995, credit Rent Expense, $995 d-debit Prepaid Rent, $10,945, credit Rent Expense, $995
- On July 1, Mitchell Company receives 20 months of rent in advance, $41,360. Mitchell Company's fiscal year ends December 31. Required: How much revenue would Mitchell recognize from this amount for the current year?On October 1, Vista View Company rented warehouse space to a tenant for $2,100 per month and received $10,500 for five months' rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account. The company's annual accounting perlod ends on December 31. The Unearned Rent account balance at the end of December, after adjustment, should be: Multiple Choice $10,500. $6,300. $2,100. $8,400. $4,200. MacBook AirThe Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021: Debit Credit Interest expense 5,400 Interest payable Rent expense Prepaid rent Interest receivable Interest revenue 5,400 17,500 17,500 450 450 Additional information: 1. The company borrowed $180,000 on March 31, 2021. Principal and interest are due on March 31, 2022. This note is the company's only interest-bearing debt. 2. Rent for the year on the company's office space is $42,000. The rent is paid in advance. 3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 3.0% due in one year. Required: 1. What is the interest rate on the company's note payable? 2. The 2021 rent payment was made at the beginning of which month? (Do not round your intermediate calculation.) 3. How much did Eldorado lend its customer on October 31?
- On November 1, 2022, an advance rent payment of $15,000, representing a six-month prepayment (for the rental period beginning on that date) was received in cash from the company's tenant. Required: Use the horizontal model (or write the journal entries) to record the effects of the following items: a). The six months of rent collected in advance on November 1, 2022. b). The adjustment that will be made at the end of each month to show the amount of rent "earned" during the month.Calco Inc. rents its store location. Rent is $950 per month, payable quarterly in advance. On July 1, a check for $2,850 was issued to the landlord for the July–September quarter.Required: Prepare the Horizontal model and Journal entry for each of the following transactions. To record the payment on July 1, assuming that all $2,850 is initially recorded as Rent Expense. To record the adjustment that would be appropriate at July 31 if your entry in a had been made. To record the payment on July 1, assuming instead that all $2,850 is initially recorded as Prepaid Rent. To record the adjustment that would be appropriate at July 31 if your entry in c had been made. To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made). Indicate the financial statement effect. If you were supervising the bookkeeper, how would you suggest that the July…Sanborn company rents space to a tenant for $2,500 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. Assuming adjustments are only made at year-end, the adjusting entry needed on December 31 is: __ Debit Rent Receivable, $7,500: credit Rent Earned, $7,500. ___ Debit Unearned Rent, $5,000: credit Rent Earned, $5,000 ___ Debit Unearned Rent, $2,500: credit Rent Earned, $2,500 ___ Debit Rent Receivable, $5,000: credit Rent Earned, $5,000. ___ Debit Rent Receivable, $2,500: credit Rent Earned, $2,500.
