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ABC Company collected 30,000 on August 31 representing 6 months rent. The Comapany is using the Liability method on advance payment. determine the following: 1. What account was credited on august 31,2020? _________ 2. What is the account to be credited on the adjusting entry on Dec 31, 2020 _________ 3. how much is the amount to be credited on dec 31, 2020 ________________ INSTRUCTIONS: choose from the following accounts for the journal entries: deferred revenue rent income cash

ABC Company collected 30,000 on August 31 representing 6 months rent. The Comapany is using the Liability method on advance payment. determine the following: 1. What account was credited on august 31,2020? _________ 2. What is the account to be credited on the adjusting entry on Dec 31, 2020 _________ 3. how much is the amount to be credited on dec 31, 2020 ________________ INSTRUCTIONS: choose from the following accounts for the journal entries: deferred revenue rent income cash

FINANCIAL ACCOUNTING
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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ABC Company collected 30,000 on August 31 representing 6 months rent. The Comapany is using the Liability method on advance payment.

determine the following:

1. What account was credited on august 31,2020? _________

2. What is the account to be credited on the adjusting entry on Dec 31, 2020 _________

3. how much is the amount to be credited on dec 31, 2020 ________________

INSTRUCTIONS: choose from the following accounts for the journal entries:

deferred revenue

rent income

cash

 

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