On December 1, 2019, an advance rent payment of $14,400, representing a three-month prepayment for the months of December January, and February, was received in cash from the company's tenant Required: Complete the below table Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Use the horizontal model to record the effects of the following items: a. The three months of rent collected in advance on December 1, 2019. Balance Sheet Liabilities Assets Stockholders Equity Netlincome Cash 14.400 b. The adjustment that will be made at the end of each month to show the amount of rent "earned during the month. Balance Sheet Assets Net income Liabilities Stockholders' Equity Income Statement Revenues Income Statement Revenues

On December 1, 2019, an advance rent payment of $14,400, representing a three-month prepayment for the months of December January, and February, was received in cash from the company's tenant Required: Complete the below table Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Use the horizontal model to record the effects of the following items: a. The three months of rent collected in advance on December 1, 2019. Balance Sheet Liabilities Assets Stockholders Equity Netlincome Cash 14.400 b. The adjustment that will be made at the end of each month to show the amount of rent "earned during the month. Balance Sheet Assets Net income Liabilities Stockholders' Equity Income Statement Revenues Income Statement Revenues

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
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.
The rent expense account in 2020 has debit balance of P74,400 composed of the following: (1) January 1, 2020 balance of P16,800 representing rent for January through April 2020; and (2) a debit of P57,600 representing a payment for one-year rent beginning May 1, 2020. Compute for the total rent expense at the end of the 2020.
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…
Suppose a customer rents a vehicle for three months from Franklin Rental on November 1, paying $3,750 ($1,250/month). Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Deferred Revenue and Service Revenue (assuming the balance of Deferred Revenue at the beginning of the year is $0).
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 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?
A landlord received $5,000 cash for December 2019's rent, but the tenant's rent for December is $8,000. Which of the following is true for year ended 2019? group of answer choices a)$8,000 would appear on the income statement as rent revenue earned. b)$8,000 would be reported on the statement of cash flows. c)$8,000 would appear on the balance sheet as rent receivable. d)$5,000 would appear on the balance sheet as prepaid rent. e)$3,000 would appear as unearned rent revenue.
For the following indenendent cases, in the space provided, calculate the amount of revenue that should be recordeu in 2019 under the revenue recognition principle (point of sale). 1. Company A rents office space to tenants. On October 1, 2019 they collected $18,000 from a tenant which represents 12 month's rent paid in advance. 2. Company B sells heavy equipment. On December 1, 2019 a customer paid a $10,000 deposit towards the purchase of a $50,000 piece of equipment. The equipment was delivered on January 16, 2020 and the balance was paid that date. 3. On December 29, 2019 Company C ships $15,000 worth of goods to a customer, F. O. B. destination. The goods arrive on January 3, 2020at the customer's office. The customer pays for the goods On February 1, 2020. 4. Company D provides legal services for clients. On December 2, 2019 a client hires the firm and pays a $10,000 advance payment. The firm did $4,ĝ00 of service in 2019.
Sheffield Corp. received a check for $19080 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $19080. Financial statements will be prepared on July 31. Sheffield's should make the following adjusting entry on July 31: debit Unearned Rent Revenue, $19080; credit Rent Revenue, $19080. debit Cash, $19080; credit Rent Revenue, $19080. debit Rent Revenue, $3180; credit Unearned Rent Revenue, $3180. debit Unearned Rent Revenue, $3180; credit Rent Revenue, $3180.
[The following information applies to the questions displayed below.] On November 1, 2022, Gordon Company collected $7,680 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2023, at which time the contract may be renewed. quired: 1. Use the horizontal model to record the effect of the six months of rent collected in advance on November 1, 2022 for Gordon Company. 2. Use the horizontal model to record the effect of the adjustment that will be made at the end of each month to show the amount of rent "earned" during the month for Gordon Company. Complete this question by entering your answers in the tabs below. Answer is not complete. Required A1 Required A2 Use the horizontal model to record the effect of the adjustment that will be made at the end of each month to show the amount of rent "earned" during the month for Gordon Company. Note: Enter decreases with a minus sign to indicate a negative financial statement…
Allentown Services Inc. is preparing adjusting entries for the year ending December 31, 2019.The following data are available:a. Interest is owed at December 31, 2019, on a 6-month, 8% note. Allentown borrowed$120,000 from NBD on September 1, 2019.b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly feeof $2,700 payable on the fifteenth of the month following the end of each quarter. No entrieshave been made for the services provided to Mack Trucks during the quarter ended December31, and the related bill will not be sent until January 15, 2020.c. At the beginning of 2019, the cost of office supplies on hand was $1,220. During 2019, officesupplies with a total cost of $6,480 were purchased from Office Depot and debited to officesupplies inventory. On December 31, 2019, Allentown determined the cost of office supplieson hand to be $970.d. On September 23, 2019, Allentown received a $7,650 payment from Bethlehem Steel for9 months of maintenance…