Ask Question
BusinessBusiness
19 December, 19:22

On October 1, Vista View Company rented warehouse space to a tenant for $3,600 per month. The tenant paid 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 period ends on December 31. The adjusting entry needed on December 31 is:

+3
Answers (1)
  1. 19 December, 19:48
    0
    The adjusting entry needed on December 31 is:

    Debit Unearned Rent revenue $10,800

    Credit Rent Revenue $10,800

    Explanation:

    Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.

    The tenant paid five months' rent in advance on October 1. From October 1 to December 31, Vista View Company had rented warehouse space to a tenant for 3 months.

    The adjusting entry needed on December 31 is:

    Debit Unearned Rent revenue $10,800 ($3,600 x 3 = $10,800)

    Credit Rent Revenue $10,800
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On October 1, Vista View Company rented warehouse space to a tenant for $3,600 per month. The tenant paid five months' rent in advance on ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Data concerning Bunck Corporation's single product appear below: Per Unit Percent of SalesSelling price $170 100% Variable expenses 34 20% Contribution margin $136 80% Fixed expenses are $202000 per month.
Answers (1)
Theresa, an outside sales person, uses her car for both business and pleasure. Last year, she traveled 30,000 miles, using 900 gallons of gasoline. Her car gets 40 mpg on the highway and 25 mpg in the city.
Answers (1)
Most companies with well-developed project management systems insist that a project must pass an approval of some kind to move from one life cycle stage to the next. A. True B. False
Answers (1)
Your client performed the physical count of inventory as of November 30, one month prior to year-end. Subsequently, your client closed the sales journal on 12/29/XX, two days before year-end, and reported those two days' credit sales in January of
Answers (1)
Freddie's Market offers customers tissues, canned goods, napkins, and various detergents in basic packaging with no identified brand.
Answers (1)
New Questions in Business
Trueview video ads can be especially effective for driving what goals?
Answers (1)
There are three factors that can affect the shape of the Treasury yield curve (r*t, IP_t, and MRP_t) and five factors that can affect the shape of the corporate yield curve (r*t, IP_t, MRPt, DRP_t, and LP_t).
Answers (1)
Alyson is an employee at Who'd of Thunk It Games, a company that was just purchased by a competitor. The goals set forth by the new management team are extremely ambitious and are placing seemingly insurmountable goals for the employees.
Answers (1)
Making any misleading representations or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any
Answers (1)
Once risks have been identified, how can they be managed?
Answers (1)
Home » Business » On October 1, Vista View Company rented warehouse space to a tenant for $3,600 per month. The tenant paid five months' rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account.
Sign Up Forgot Password?