Ask Question
BusinessBusiness
1 July, 20:05

XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2020 adjusting entry is

+3
Answers (1)
  1. 1 July, 20:25
    0
    Dr Rent revenue

    Cr Unearned rent revenue, $4,500

    Explanation:

    Preparation of XYZ Company Journal entry

    Since we were told that the Company received the amount of $18,000 on April 1, 2020 for a one year's rent paid in advance in which the transaction has a credit to a nominal account, this means we have to record the transaction by Debiting Rent revenue with 4,500 and Crediting Unearned rent revenue, with the same amount of $4,500 calculated as

    (3/12 x $18,000).

    Dr Rent revenue

    Cr Unearned rent revenue, $4,500

    (3/12 x $18,000)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal ...” 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
The availability of health insurance tends to a. decrease the quantity of health care demanded and cause an underallocation of resources to the health care industry. b.
Answers (2)
Tops had cost of goods sold of $10,821 million, ending inventory of $3,489 million, and average inventory turnover of $2,105 million. Its days' sales in inventory equals: (Use 365 days a year.) 71.0 days 46.7 days 46.4 days 117.7 days 0.3 days
Answers (1)
What is the largest energy store in a well fed human?
Answers (1)
When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of a loss on disposal of equipment? Multiple Choice Add the loss to net income.
Answers (1)
Jared drives his car knowing that the brakes are defective and has an accident in which the car is damaged and he is injured. He will likely be unable to recover from the manufacturer, because he voluntarily assumed the risk of the defective brakes.
Answers (1)
New Questions in Business
What are some effects of multinational businesses?
Answers (1)
When should you use capitalization? A. For all nouns in a sentence B. At the end of a sentence and in the footer C. At the beginning of a sentence and for proper nouns D. For verbs and nouns in a sentence
Answers (2)
A child in a child passenger restraint system (car seat) should.
Answers (1)
Compare items that are exempt and nonexempt from Chapter 7 fillings. (does A B C or D go with 1 or 2) (each letter must go with one) (1) Exempt (2) Nonexempt (A) second car (B) pension (C) household appliances (D) family heirlooms
Answers (1)
A structure within which executives, managers, specialists, and workers are broken out is commonly known as what type of structure?
Answers (1)
Home » Business » XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2020 adjusting entry is
Sign Up Forgot Password?