On December 1, 2014 Golden Acres rented a retail store to Summer Daze. On December 31, 2014 an adjusting entry is required to journalize the rent earned in December. Two sliders are provided to evaluate the financial statement impact of changes in the amount received for rent and the rental period. The slider impact is shown first on a timeline and then in the T-accounts of the accounting equation. If an answer is zero, enter "0". 1. If the amount of rent received in advance is $2,000 and the rental period is four months, the amount of the adjusting entry on Dec. 31, 2014 is $____________ 2. If the amount of rent received in advance is $8,000 and the rental period is two months, the amount of the adjusting entry on Dec. 31, 2014 is $___________ 3. If the amount of rent received in advance is $6,000 and the rental period is three months, the adjusted balance of unearned rent on Dec. 31, 2014 is $____________
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
On December 1, 2014 Golden Acres rented a retail store to Summer Daze. On December 31, 2014 an
If an answer is zero, enter "0".
| 1. | If the amount of rent received in advance is $2,000 and the rental period is four months, the amount of the adjusting entry on Dec. 31, 2014 is $____________ |
| 2. | If the amount of rent received in advance is $8,000 and the rental period is two months, the amount of the adjusting entry on Dec. 31, 2014 is $___________ |
| 3. | If the amount of rent received in advance is $6,000 and the rental period is three months, the adjusted balance of unearned rent on Dec. 31, 2014 is $____________ |
| 4. | If the rental period increases and the amount of rent received in advance remains the same, the amount of the adjusting entry for Dec. 31, 2014 __________(decreases/stays the same/increases). |
| 5. | If the amount of rent received in advance is $4,000 and the rental period is four months, the amount rent revenue earned as of December 31, 2014 is $__________ |
| 6. | If the amount of rent received in advance increases and the rental period remains the same, the amount of unearned rent at the end of the rental period ___________ (decreases/ stays the same/ increases). |
| 7. | If the amount of rent received in advance is $6,000 and the rental period is two months, the amount rent revenue recorded on December 1, 2014 is $_________ |
Hi, since you have posted a question with multiple sub parts, we will solve the 1st three sub parts for you. To get the remaining sub parts solved, kindly repost the complete question and mention the sub parts to be solved.
Prepaid Rent : Rental amount that is paid now by the tenant but which is due in the future periods. It is also called as "Rent received in advance".
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