Baden Realty Company received a check for: P18,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Uncarned Rent was credited for the full P18,000. Financial statements will be prepared on July 31. Baden Realty should make the following adjusting entry on July 31: * Debit Unearned Rent, P3,000; Credit Rental Revenue, P3,000. Debit Rental Revenue, P3,000; Credit Unearned Rent, P3,000. Debit Unearned Rent, P18,000; Credit Rental Revenue, P18,000. Debit Cash, P18,000; Credit Rental Revenue, P18,000.

Baden Realty Company received a check for: P18,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Uncarned Rent was credited for the full P18,000. Financial statements will be prepared on July 31. Baden Realty should make the following adjusting entry on July 31: * Debit Unearned Rent, P3,000; Credit Rental Revenue, P3,000. Debit Rental Revenue, P3,000; Credit Unearned Rent, P3,000. Debit Unearned Rent, P18,000; Credit Rental Revenue, P18,000. Debit Cash, P18,000; Credit Rental Revenue, P18,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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