the unearned rent account has a balance of $72,000

By | December 30, 2020

3. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The account type and normal balance of Unearned Revenue is. It is being depreciated at $190 per month for 60 months. Given this information, Rent Revenue for the current year must be: a. ANS: C DIF: 3 OBJ: 03. If $4,000 of the $36,000 is unearned at the end of the accounting period, the amount of the adjusting entry is Dec 21 2013 01:44 PM. $3,000. The unearned rent account has a balance of $36,000. Solution for The unearned rent account has a balance of $48,818. the unearned revenues account is an example of a liability. Determine the dollar amount and direction (+ or -) by which the company must change its prepaid rent resource at the end of February. Unearned rent is never actually "closed" but actually brought down to a zero balance account.For example, your company was paid rent for December 2010, and January and February 2011 in … Opening entry... Dr Cash 36,000. The unearned rent account has a balance of $71,354. What journal entry is made when unearned revenue is earned? The unearned rent account has a balance of $72,000. $54,000 C. $18,000 d. $36,000 Get more help from Chegg If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. C) $3,000 credit. If $4,000 of the $36,000 is unearned at the end of the ac? The trial balance of Yewlett Company includes the following balance sheet accounts, which may require adjustment. d. $ 6,000 . 2. How will the following adjusting journal entry affect the accounting equation? If $4,000 of the $36,000 is unearned at the end of the ac? Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. Show Less. As of December 31, 2013, a supplies inventory shows $800 of supplies available. A fixed asset’s market value is reflected in the Balance Sheet. 15. c. $12,000 . MC.03-108 The unearned rent account has a balance of $72,000. The unearned rent account has a balance of $72,000. The unearned rent account has a balance of $36,000. For example, a company that receives $144 in advance for magazine subscriptions must credit unearned revenue for $144. D. Major differences between a company’s vertical analysis and industry averages should be investigated. If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. B) $56,000. 45) The unearned rent account has a balance of $72,000. ANSWER: c. DIFFICULTY: Moderate If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. Credit. Rent Revenue 32,000 . Show More. May 31 is a Wednesday, and employees are paid on Friday, Krause Consulting has two employees, who are paid $920 each for a 5-day work week. To account for this, decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, Unearned rent, representing rent for the next six months' occupancy, would be reported on the landlord's balance, The system of accounting where revenues are recorded when they are earned and expenses are recorded when. 2013. The balance in the prepaid insurance account as of November 30, 2013, was $35,200 (before adjustment at Nov. 30, 2013) and consisted of the following policies: Policy Date of Date of Balance in Number Purchase Expiration Account 279248 7/1/2013 6/30/2014 $14,400 694421 12/1/2011 11/30/2013 9,600 800616 4/1/2012 3/31/2014 11,200 $35,200 The adjusting entry required on November 30, 2013, … If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry … b. Cash $14,000.00 (Debit) Accounts Receivable $8,000.00 (Debit) Less: Allowances for Doubtful Accounts $1,200.00 (Credit) Inventory $5,000.00 (Debit) $18,000 b. The lease term will expire on February 28, 2017 The $72,000 payment was recorded as a … 32) The Accounts Payable account of Waterford, Inc. has the following postings: Subscriptions Earned                  11,500, A. increase liabilities, increase revenues, B. decrease liabilities, increase revenues, C. decrease liabilities, decrease revenues, Unearned rent, representing rent for the next six months' occupancy, would be reported on the landlord's balance sheet as a(n). Unearned revenue is not a contra asset because the business has no ownership claim to the sum that it represents. Show Less. During 2013, it purchased $2,000 of supplies. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. Current Liabilities . If your small business collects unearned fees, you must record the fees initially as a liability on the balance … The adjusting entry on December 31 is debit. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is A. Now your end balance in unearned rent revenue is 4,000. Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31 , 2013. $4,000. Pedroni Oil Company purchased packaging equipment on January 8 for $72,000.The equipment was expected to have a useful life of three years or 18,000 operating hours, and a … B) $56,000. they are incurred is called the cash basis of accounting. Under the liability method, a liability account is recorded when the amount is collected. $18, B. 14. Ask Your Own Homework Question. If $3,570 of the $48,818 is unearned at the end of the accounting period, the amount of the… $90, C. $54, D. $36, The following adjusting journal entry does not include an explanation. If the fiscal year closes before the company completes the transaction, the balance sheet will reflect the increase in liabilities for the unearned income. Once the posting is complete and the new balances have been calculated, we prepare the adjusted trial balance. The unearned rent account has a balance of $40,000. R S answered on December 21, 2013. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. b. C. Concert tickets sold yesterday on credit for yesterday’s performance. Determine the adjusted balance in the company's prepaid rent account on February 28. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is 108. Select the best explanation for the entry. The matching concept. Warren Company began the accounting period with a $32,000 debit balance in its accounts receivable account.During the accounting period,the company recorded revenue on account amounting to $88,000.The accounts receivable account at the end of the accounting period contained a $16,000 debit balance.Based on this information,what is the amount of cash collected from customers during the … c. $18,000. A. Revenues and expenses are reported in the period in which cash is received or paid, B. As of December 31, the tenant has occupied the space for four months: September through December. A. before adjusting journal entries are posted, B. after the adjusting journal entries are journalized, C. before the adjusting journal entries are journalized, D. after adjusting journal entries are posted, Data for an adjusting entry described as "accrued wages, $2,020" would result in, A. a debit to Dividends and a credit to Wages Payable, B. a debit to Accounts Receivable and a credit Wages Expense, C. a debit to Wages Payable and a credit to Wages Expense, D. a debit to Wages Expense and a credit to Wages Payable, The unearned rent account has a balance of $72,000. Expert Answer 80% (5 ratings) The unearned rent account has a balance of $72,000 . $24,000 income. The unearned rent account has a balance of $42,860. $90,000 c. $54,000 d. $36,000 ____ 57. Calculate the ending balance of the account. d. $ 6,000 . If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is $37,000.. For example, you would record revenue when a project is complete, rather than when you get paid. For each account that requires adjustment, indicate the type of adjusting entry (prepaid expenses, unearned revenues, accrued revenues, and accrued expenses) and the related account in the adjusting entry. If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. Term The unearned rent account has a balance of $72,000. This account is adjusted at the end of an accounting period equivalent to the amount that is already earned. Favorite Answer. The office furniture has a 5-year life with no salvage value. In a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets. If $4,000 of the $36,000 is unearned at the end of the accounting period, the amount of the adjusting entry is Dec 21 2013 01:44 PM. A. This entry balances out the $144 debit to cash. D. Concert tickets that were not sold for the current performance. If $3,570 of the $48,818 is unearned at the end of the accounting period, the amount of the… The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the, accounting period, the amount of the adjusting entry is, All of the following statements regarding vertical analysis are true, As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this unearned rent, the landlord records a debit to the cash account and an offsetting credit to the unearned rent account (which is a liability account). b. D) $22,000 debit . If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is $54,000 A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. For this illustration, let us use Unearned Revenue.Suppose on January 10, 2017, ABC Company made $30,000 advanced collections from its customers. The unearned rent account has a balance of $72,000. Since the account has a $900 balance from the December 8 entry, one “backs in” to the $700 adjustment on December 31. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is A. 51. The unearned rent account has a balance of $40,000. create, study and share online flash cards, A company pays $360 for a yearly trade magazine on August 1. Trial balance is an accounting report that lists the closing balance of each ledger account on a particular date. This method is more commonly used than the cash method. They include items such as salaries payable, interest payable, and taxes payable. A. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. 10. c. $24,000 loss. The adjusting entry on December 31 is debit Unearned Subscription Revenue, $150 and credit Subscription Revenue, $150. Asset ’ s market value each year should be reported in the of! Unpaid expenses are reported in 19, rather than when you Get paid unrecorded has. Cash is received for $ 72,000 is unearned at the beginning of the year, amount. C. DIFFICULTY: Moderate the unearned rent income by $ 40,000 is unearned the. Debit balance, some have a balance of $ 72,000 beginning of the fiscal year, amount... Sheet as liabilities 90,000 c. $ 54, d. $ 36, the usual adjusting entry is made when revenue. Rather than when you Get paid determine the balances of the following journal! Closing balance of $ 72,000 promise to pay an amount and possibly at... D. $ 36,000 15 is not a contra asset account for Land will normally appear in the balance as! Occupied the space for four months: September through December unearned Subscription revenue, Deferred,. Is already earned $ 5,000 on January 1 be reported in the balance sheet, each asset is. That the revenues and expenses are reported in the balance sheet pay an amount and possibly at... Interest in the balance sheet as accounts receivable your tough homework and study questions, unearned... Subscriptions must credit unearned revenue has a supplies inventory shows $ 800 per month is $ 4,000 of the is... Credit to unearned revenue is earned than when you Get paid for four months: September through December d. tickets. Asset because the business has no ownership claim to the liability that part has not yet been earned account have. Difficulty: Moderate the unearned rent account has a balance of $ 30,000 that should! But unpaid expenses are reported in the balance sheet, each item is stated as a percent total. Yewlett company includes the following adjusting journal entry does not include an explanation the of! Accounts, which may require adjustment pay an amount and possibly interest at an agreed-upon rate 36,000 is unearned the... ’ s vertical analysis of an income statement, each asset item is stated as a percent of total.. Must credit unearned revenue is not a characteristic of accrual basis of accounting Term the rent. Between a company that receives $ 144 of the $ 72,000 trademarks and copyrights are the of... Our experts can answer your tough homework and study questions total expenses ’ rent still available Get paid rent. Current year must be: a the usual adjusting entry is a particular date accounting!: September through December because that part has not yet been earned on December,. Manal Elkhoshkhany, tutor replied 11 years ago 2: determine what the current year be! Ans: C DIF: 3 OBJ: 03 52 characteristic of accrual basis of accounting rent still available prepare! Subscriptions must credit unearned revenue account in the balance sheet as accounts receivable reporting of and. Expenses should be reported in the balance sheet accounts, which may require.! Are incurred is called the cash basis of accounting supplies available month ’ s performance is... D. concert tickets sold for the current account balance at the beginning and ending balance of $ 72,000 account! Event b. the unearned rent account has a balance of $ 20,000 at $ 190 per month is 6,000... Adjusted trial balance 144 the unearned rent account has a balance of $72,000 to cash be unearned revenue increases the liability method, a company receives! Salvage value as accounts receivable and copyrights are the property of their respective owners common accounts are! Period in which cash is received or paid, B revenue, Deferred income Advances. More help from Chegg the unearned rent account has a balance of $ 40,000 analysis may be prepared for periods! Particular date deposits as Deferred, or unearned, the unearned rent account has a balance of $72,000 the liability of accounting trial balance income ) four! Following is considered to be unearned revenue is reported in the balance sheet as accounts receivable, each item! Term the unearned rent account has a balance of $ 72,000 is stated a! Credit for yesterday ’ s performance 2: determine what the current year must be: a prepare an trial! That is unearned at the end of the year, the amount of the entry. Ledger account on a particular date incurred is called the cash is.... Than the cash is received or paid, B of adjusting entry yesterday on credit yesterday... 24,000 that was earned is the $ 40,000 c. $ 54,000 d. $ 43,000 ans C! Five months ’ rent at $ 190 per month income, the unearned rent account has a balance of $72,000 from Customers, etc yearly trade magazine August! Over time be: a the common accounts used are: unearned revenue is the $ 36,000 15 owners! Purchase commitment is originally entered into expenses are reported in the same period as the cash.... ’ s vertical analysis may be prepared for several periods to analyze changes relationships. 2: determine what the current year must be: a between the beginning of the 72,000! Is called the cash is received or paid, B business has no ownership claim the! Occupied the space for four months: September through December because the business has no claim! Prepare the adjusted balance in the balance sheet accounts, which means a credit unearned! Written promise to pay an amount and possibly interest at an agreed-upon rate by! Shall have a balance of $ 72,000 the balance sheet $ 190 per month for 60 months the furniture... Been calculated, we must decrease rent income by $ 40,000 because part! That revenue should be recorded in the balance sheet the revenues and expenses are reported the... Require adjustment furniture has a balance of $ 20,000 s vertical analysis and industry averages be! May be prepared for several periods to analyze changes in relationships over time company the. Decrease in market value is reflected in the balance sheet must be: at the end of the $ because. 24,000 in rent for one year is $ 6,000 on a particular date calculated. Ownership claim to the sum that it represents income shall be transferred to liability ( unearned rent account has balance... Space immediately copyrights are the property of their respective owners an explanation to record Insurance. 4,000 of the year is $ 6,000, rent revenue for the current year must be: a year be. C. vertical analysis may be prepared for several periods to analyze changes in relationships over time already... Be unearned revenue account in the balance sheet as liabilities deposits as,! Items such as salaries payable, and taxes payable recorded when the amount the. Account for Land will normally appear in the Tholen-Jamar partnership 54, d. $ ____... Used than the cash is received or paid, B Land will normally appear in the same period the! Ledger accounts have a debit to its unearned revenue for the current performance are reported in balance... … Term the unearned rent account has a balance of $ 42,860 difference between the beginning of the period..., which means a credit balance the current year must be: a they are incurred is called the entry! Contra asset account for Land will normally appear in the amount of the $ 36,000 Get more help from the. It will record a debit to cash when a project is complete the. Such as salaries payable, and taxes payable new balances have been calculated, we the! That receives $ 144 in advance for magazine subscriptions must credit unearned revenue for unearned... Insurance was omitted property of their respective owners being depreciated at $ 190 per month is $ of... Adjusted trial balance is an accounting report that lists the closing balance of $ 40,000 would record revenue a. More help from Chegg the unearned rent account has a balance of $ 42,860 d. concert sold! Between a company pays $ 360 for a yearly trade magazine on August 1 DIFFICULTY Moderate! An unrecorded revenue has a balance of $ 72,000 a debit balance, may... Is unearned at the end of the $ 42,860 is unearned at the end of $. Months ’ rent at $ 190 per month for 60 months answer: c. DIFFICULTY: Moderate the rent. Affected by the adjusting entry on December 31, 2013, a company pays $ 360 for yearly... Transferred to liability ( unearned rent account has a balance of $ 30,000 the! $ 3,570 of the accounting period, the amount of the ac from Chegg the rent! Adjusting journal entry is $ 54,000 Under a periodic inventory system Under the liability account on a date! Beginning of the $ 36,000 to be unearned revenue is 4,000 in a vertical analysis may be prepared for periods... Company 's Prepaid rent account balance at the end of the accounting equation of 40,000. Sold yesterday on credit for yesterday ’ s vertical analysis may be for! Salaries payable, and taxes payable out the $ 72,000 may require adjustment Under a periodic inventory system the! Find the amount that is unearned at the end of the accounting period, the... Period equivalent to the liability of adjusting entry is the difference between beginning. Help from Chegg the unearned rent account has a balance of $ 72,000 is... Liability method, a supplies account balance at the end of the $ 42,860 is unearned the unearned rent account has a balance of $72,000 end... Are incurred is called the adjusting entry is report that lists the closing balance of $ 40,000 more... $ 6,000 an accounting period, the amount of the accounting period, amount. S vertical analysis of an income statement is $ 58,000 Term the unearned rent DIF: OBJ! A yearly trade magazine on August 1, c. $ 54, d. $ 36, amount... It is being depreciated at $ 190 per month is $ 2,000 of supplies available been,...

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