On July 1, 2012, ten months\' rent income totaling $22,000 was received on a sto

Question

On July 1, 2012, ten months' rent income totaling $22,000 was received on a storage unit rental. The receipt of cash was originally recorded by a credit to Unearned Rent Revenue (a real account). The required adjusting entry at December 31, 2012 would require a
Credit to _______________ (Account Title)
For $_______________ (Amount)


3. The unadjusted trial balance amount for Prepaid Insurance (a real account) on December 31, 2012, was $15,000. The Insurance policy was purchased on April 1, 2012 and is effective for 12 months starting on that date. The required adjusting entry on December 31, 2012 would require a
Credit to _______________ (Account Title)
For $_______________ (Amount)

Explanation / Answer

On July 1, 2012, ten months' rent income totaling $22,000 was received on a storage unit rental. The receipt of cash was originally recorded by a credit to Unearned Rent Revenue (a real account). The required adjusting entry at December 31, 2012 would require a : 1 Jul12 Cash Dr 22,000 Unearned Rent Rev Cr 22,000 (To reocrd rxpt of Adv Rent) 31 Dec12 Unearned Rent rev Dr 13,200 Rent revenue Cr 13,200 (To record Jul-Dec ie 6 months Rent realised @$2200 pm) 3. The unadjusted trial balance amount for Prepaid Insurance (a real account) on December 31, 2012, was $15,000. The Insurance policy was purchased on April 1, 2012 and is effective for 12 months starting on that date. The required adjusting entry on December 31, 2012 would require a 1 Apr12 Prepiad Insu Dr 15,000 Cash Cr 15,000 (To reocrd Payment for Insurance for 12 m) 31 Dec12 Insurance A/C Dr $11,250 Prepaid Insu A/c Cr $11,250 (To record Apr-Dec ie 9 months Isurance@($15000/12)*9)

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