Baylor Company began subleasing office space in its new building on July 1, 2016. At December 31, Baylor Company had the following rental contracts that are paid in full for the entire term of the lease. Baylor Company recorded all advance collections initially under a revenue account. Date Term (months) Monthly Rent No. of Leases October 1 9 $1,500 2 November 1 15 $3,500 5 The appropriate adjusting entry to be made at December 31, 2016 includes: A. Debit Rent revenue $49,100 B. Debit Rent revenue $44,500 C. Debit Rent revenue $245,500 D. Debit Unearned rent $289,500
Baylor Company began subleasing office space in its new building on July 1, 2016. At December 31, Baylor Company had the following rental contracts that are paid in full for the entire term of the lease. Baylor Company recorded all advance collections initially under a revenue account. Date Term (months) Monthly Rent No. of Leases October 1 9 $1,500 2 November 1 15 $3,500 5 The appropriate adjusting entry to be made at December 31, 2016 includes: A. Debit Rent revenue $49,100 B. Debit Rent revenue $44,500 C. Debit Rent revenue $245,500 D. Debit Unearned rent $289,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Baylor Company began subleasing office space in its new building on July 1, 2016. At December 31, Baylor Company had the following rental contracts that are paid in full for the entire term of the lease. Baylor Company recorded all advance collections initially under a revenue account.
| Date | Term (months) | Monthly Rent | No. of Leases |
| October 1 | 9 | $1,500 | 2 |
| November 1 | 15 | $3,500 | 5 |
The appropriate
A. Debit Rent revenue $49,100
B. Debit Rent revenue $44,500
C. Debit Rent revenue $245,500
D. Debit Unearned rent $289,500
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