2. On July 15, 2017 Maky Company collected in advance cash of P96,000 from a tenant of her building. This represents rental, which covers from the period August 1, 2017 to August 1, 2019 (two-year contract). How much is the earned portion of the rental collected in advance for the year ended December 31, 2017? b. How much is the unearned portion of the rental collected in advance for the year ended December 31, 2017? c. Assuming that "Income method" was used in recording the precollection, what is the adjusting entry on December 31, 2017?

2. On July 15, 2017 Maky Company collected in advance cash of P96,000 from a tenant of her building. This represents rental, which covers from the period August 1, 2017 to August 1, 2019 (two-year contract). How much is the earned portion of the rental collected in advance for the year ended December 31, 2017? b. How much is the unearned portion of the rental collected in advance for the year ended December 31, 2017? c. Assuming that "Income method" was used in recording the precollection, what is the adjusting entry on December 31, 2017?

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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