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Apex Properties, Inc. owns two warehouse buildings that it rents to other businesses. The two buildings are very desirable properties and this enables Apex to require that renters pay rent in advance. The following is data for each building: Building #1 - Located at 111 Warehouse Way Rental rate $3,000 per month Number of months of rent collected in advance 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Building #2 – Located at 444 Storage Street Rental rate $4,000 per month Number of months of rent collected in advance .... 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Apex has the accounting policy that rent collected in advance be initially recorded in a liability account. The balance in the Unearned Rent Revenue account as of December 31, 2020 was $0. On January 1, 2021, Apex collected cash for the 3 month advance payment of rent for both buildings. The cash collected is detailed below: Building #1 - for Jan., Feb. & March-3 months cash collected.... (3 x $3,000) $ 9,000 ..... Building #2 - for Jan., Feb. & March -3 months cash collected.... (3 x $4,000) $12,000 ..... Total cash collected on January 1, 2021 $21,000 The following is a partial list of the accounts in Apex's General Ledger. These are the only accounts you need for this problem. D Cash D Unearned Rent Revenue (liability account) D Rent Revenue (revenue account)

Apex Properties, Inc. owns two warehouse buildings that it rents to other businesses. The two buildings are very desirable properties and this enables Apex to require that renters pay rent in advance. The following is data for each building: Building #1 - Located at 111 Warehouse Way Rental rate $3,000 per month Number of months of rent collected in advance 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Building #2 – Located at 444 Storage Street Rental rate $4,000 per month Number of months of rent collected in advance .... 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Apex has the accounting policy that rent collected in advance be initially recorded in a liability account. The balance in the Unearned Rent Revenue account as of December 31, 2020 was $0. On January 1, 2021, Apex collected cash for the 3 month advance payment of rent for both buildings. The cash collected is detailed below: Building #1 - for Jan., Feb. & March-3 months cash collected.... (3 x $3,000) $ 9,000 ..... Building #2 - for Jan., Feb. & March -3 months cash collected.... (3 x $4,000) $12,000 ..... Total cash collected on January 1, 2021 $21,000 The following is a partial list of the accounts in Apex's General Ledger. These are the only accounts you need for this problem. D Cash D Unearned Rent Revenue (liability account) D Rent Revenue (revenue account)

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 8DQ
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Apex Properties, Inc. owns two warehouse buildings that it rents to other businesses. The two buildings are very desirable properties and this enables Apex to require that renters pay rent in advance. The following is data for each building: Building #1 - Located at 111 Warehouse Way Rental rate $3,000 per month Number of months of rent collected in advance 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Building #2 - Located at 444 Storage Street Rental rate $4,000 per month Number of months of rent collected in advance 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Apex has the accounting policy that rent collected in advance be initially recorded in a liability account. The balance in the Unearned Rent Revenue account as of December 31, 2020 was $0. On January 1, 2021, Apex collected cash for the 3 month advance payment of rent for both buildings. The cash collected is detailed below: Building #1 – for Jan.., Feb. & March - 3 months cash collected... (3 x $3,000) $ 9,000 ..... $12,000 Building #2 – for Jan., Feb. & March - 3 months cash collected.... (3 x $4,000) Total cash collected on January 1, 2021 $21,000 The following is a partial list of the accounts in Apex's General Ledger. These are the only accounts you need for this problem. D Cash D Unearned Rent Revenue (liability account) D Rent Revenue (revenue account)
Transcribed Image Text:Apex Properties, Inc. owns two warehouse buildings that it rents to other businesses. The two buildings are very desirable properties and this enables Apex to require that renters pay rent in advance. The following is data for each building: Building #1 - Located at 111 Warehouse Way Rental rate $3,000 per month Number of months of rent collected in advance 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Building #2 - Located at 444 Storage Street Rental rate $4,000 per month Number of months of rent collected in advance 3 months Dates when rent is collected in advance January 1, April 1, July 1, October 1 Apex has the accounting policy that rent collected in advance be initially recorded in a liability account. The balance in the Unearned Rent Revenue account as of December 31, 2020 was $0. On January 1, 2021, Apex collected cash for the 3 month advance payment of rent for both buildings. The cash collected is detailed below: Building #1 – for Jan.., Feb. & March - 3 months cash collected... (3 x $3,000) $ 9,000 ..... $12,000 Building #2 – for Jan., Feb. & March - 3 months cash collected.... (3 x $4,000) Total cash collected on January 1, 2021 $21,000 The following is a partial list of the accounts in Apex's General Ledger. These are the only accounts you need for this problem. D Cash D Unearned Rent Revenue (liability account) D Rent Revenue (revenue account)
equirement 1 -- January 1 receive $21,000 adv Debit Credit Date Account Name Requirement 2 -- "T" Account Analysis for the January 31 adjusting entry "T" Account Analysis for Asset and Liability Accounts Account Name → Unearned Rent Revenue Debit Credit (1) What is the current balance? (3) What adjustment is required to adjust from the current balance to the should be balance? |(2) What should be the balance? 14,000 Bldg #1 $6,000 (Feb. & March) + Bldg #2 $8,000 (Feb. & March) = $14,000 equirement 3 -- January 31 Unearned Rent Revenue adjusting entry Date Account Name Debit Credit
Transcribed Image Text:equirement 1 -- January 1 receive $21,000 adv Debit Credit Date Account Name Requirement 2 -- "T" Account Analysis for the January 31 adjusting entry "T" Account Analysis for Asset and Liability Accounts Account Name → Unearned Rent Revenue Debit Credit (1) What is the current balance? (3) What adjustment is required to adjust from the current balance to the should be balance? |(2) What should be the balance? 14,000 Bldg #1 $6,000 (Feb. & March) + Bldg #2 $8,000 (Feb. & March) = $14,000 equirement 3 -- January 31 Unearned Rent Revenue adjusting entry Date Account Name Debit Credit
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