On October 1, Goodwell Company rented warehouse space to a tenant for $1,600 per month and received $8,000 for five months' rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Revenue account. The company's annual accounting period ends on December 31. The Unearned Revenue account balance at the end of December, after adjustment, should be: Multiple Choice $3,200. $1,600. $8,000. $6,400. $4,800.

On October 1, Goodwell Company rented warehouse space to a tenant for $1,600 per month and received $8,000 for five months' rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Revenue account. The company's annual accounting period ends on December 31. The Unearned Revenue account balance at the end of December, after adjustment, should be: Multiple Choice $3,200. $1,600. $8,000. $6,400. $4,800.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section: Chapter Questions

Problem 1CP

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