12. Leyland Realty Company received a check for $18,000 on July 1, which represents a6-Ma advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full 18,000. Financial statements will be prepared on July 31. Leyland realty should make the following adjusting entry on July 31: Debit Unearned Rent Revenue, $3,000; credit Rent Revenue, $3,000. Debit Rent Revenue, 3,000; credit Unearned Rent Revenue, $3,000. Debit Unearned Rent Revenue, $18,000; credit Rent Revenue, $18,000. Debit Cash, 18,000; credit Rent Revenue, $18,000. a. b. C. d.

12. Leyland Realty Company received a check for $18,000 on July 1, which represents a6-Ma advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full 18,000. Financial statements will be prepared on July 31. Leyland realty should make the following adjusting entry on July 31: Debit Unearned Rent Revenue, $3,000; credit Rent Revenue, $3,000. Debit Rent Revenue, 3,000; credit Unearned Rent Revenue, $3,000. Debit Unearned Rent Revenue, $18,000; credit Rent Revenue, $18,000. Debit Cash, 18,000; credit Rent Revenue, $18,000. a. b. C. d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Johnson Inc. has the following information available: On November 1, 20X1, Johnson lent $15,000 cash to one of its employees. The employee signed a one-year, 12%, promissory note. The note's principal plus interest is repaid to Johnson on November 1, 20X2. Interest calculations are rounded to the nearest whole month. Prepare journal entries to record the November 1, 20X1 transaction, the adjusting entry on 12/31/X1, and the November 1, 20X2 transaction.
On May 10, 20X1, Washington Company received a 90-day, 8 percent, $8,400 interest-bearing note from Whitehead Company in settlement of Whitehead's past-due account. On June 30, Washington discounted this note at City Bank and Trust. The bank charged a discount rate of 13 percent. On August 8, Washington received a notice that Whitehead had paid the note and the interest on the due date. Required: Prepare the entries in general journal form to record these transactions. Analyze: If the company prepared a balance sheet on July 31, 20X1, how should Notes Receivable-Discounted be presented on the statement?
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(a) assuming Ringo Company makes reversing entries, prepare the reversing entry on January 1, and the journal entry to record the payment of the note on April 1; and On April 1, Ringo Company borrowed $20,000 from its bank by issuing a 9%, 12-month note, with the interest to be paid on the maturity date. Prepare journal entries to record the issuance of the note and the related year-end adjusting entry on December 31.
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