On July 1, Small Digital Phone received $4,800 for two years\' rent in advance f

Question

On July 1, Small Digital Phone received $4,800 for two years' rent in advance from Garrison Company. The December 31 adjusting entry that small should make is to: First Realty paid $3,600 rent on a building in advance for three years on October 31. The amount that should be recorded as rent expense as of December 31 is: Determine the cash short (-) or over (+) Given the following: The balance per the Petty Cash account $100 The count of coin and currency amounts to $9 There are receipts: for telephone costs of $12

Explanation / Answer

a) D debit unearned rent and credit rent income by $1200

As when rent was received the entry was debit cash and cr unearned rent as it was received in advance on July1 by $2400/ On 31 December 6 months rent was earned so we have to debit unearned rent and credit rent income by $1200 to recognize the income.

b) $3600 rent paid for 36 months so for each month it is $100 so for 2 months ending 31 December the rent expense would be $200 Ans B

c) Petty Cash= $(100+9-12-23-18-35)= Cash over +21

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.