On December 1, 2016, XYZ Co. agreed to rent space in ABC\'s building for $4,500

Question

On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month, and XYZ paid ABC on December 1 in advance for the first three months' rent. The entry made on December 1 was as follows: Dr Cash 13,500 Cr Unearned rent revenue 13,500 The unearned revenue account must be adjusted to reflect the amount earned as of 12/31/16. On December 1, 2016, XYZ Co. agreed to rent space in ABC's building for $4,500 per month, and XYZ paid ABC on December 1 in advance for the first three months' rent. The entry made on December 1 was as follows: Dr Cash 13,500 Cr Unearned rent revenue 13,500 The unearned revenue account must be adjusted to reflect the amount earned as of 12/31/16.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Dr Cr Entry on Dec 31'2016 Unearned Rent revenue            4,500.00 To Rent revenue            4,500.00 (13,500/3) Balance in unearned revenue account on Dec 31'2016            9,000.00

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