Question 8 Crane Real Estate received a check for $27540 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $27540. Financial statements will be prepared on July 31. Crane Real Estate should make the following adjusting entry on July 31: O Debit Unearned Rent Revenue, $27540; Credit Rent Revenue, $24480. O Debit Rent Revenue, $4590; Credit Unearned Rent Revenue, $4590. O Debit Cash, $27540; Credit Rent Revenue, $27540. O Debit Unearned Rent Revenue, $4590; Credit Rent Revenue, $4590.

Question 8 Crane Real Estate received a check for $27540 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $27540. Financial statements will be prepared on July 31. Crane Real Estate should make the following adjusting entry on July 31: O Debit Unearned Rent Revenue, $27540; Credit Rent Revenue, $24480. O Debit Rent Revenue, $4590; Credit Unearned Rent Revenue, $4590. O Debit Cash, $27540; Credit Rent Revenue, $27540. O Debit Unearned Rent Revenue, $4590; Credit Rent Revenue, $4590.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following are transactions of Danica Company. Dec. 13 Accepted a $18,000, 45-day, 10% note in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note.