Help me answering this, thanks. 3.2 Direction: Praclice what you understand by answering the proceeding problem.On October 1, 2021, Adam Realty Co. collected the amount of P60,000 representing advanced rentalfrom a tenant who occupies a space of the building. The advanced rental willi cover the period Oct 1,2021 to October 1, 2022. The accounting period ends on December 31, 2021.Assuming the income method is used:1. What is the journal entry to record the advance collection?2. How much is the unearned portion of the amount received in advance as of December 31, 2021?3. What is the adjusting entry to record on December 31, 2103?4. In your adjusting entry, what account will you record, Income or Liability?5. In your adjusting entry, are you increasing or decreasing the amount of your Rent Income account?6. After posting the adjusting entry, how much is the balance of the Rent Income account?Assuming the liability method is used:7. What is the journal entry to record the advance collection?8. How much is the earned portion of the amount received in adivance as of December 31, 2021?9. What is the adjusting entry to record on December 31, 2103? 10. In your adjusting entry, what account will you record, Liability ur Income?11. In your adjusting entry, are you increasing or decreasing the amount of your Rent Income account?12. After posting the adjusting entry, how much is the balance of the Unearned Rent Income account?

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 69E: Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1,...

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Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2019, follows: The following business transactions were completed by Valley Realty during August 2019: Aug. 1. Purchased office supplies on account, 3,150. 2.Paid rent on office for month, 7,200. 3.Received cash from clients on account, 83,900. 5.Paid insurance premiums, 12,000. 9.Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, 400. Analyzing Transactions Aug. 17. Paid advertising expense, 8,000. 23.Paid creditors on account, 13,750. Enter the following transactions on Page 19 of the two-column journal: 29.Paid miscellaneous expenses, 1,700. 30.Paid automobile expense (including rental charges for an automobile), 2,500. 31.Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, 2,000. 31.Paid salaries and commissions for the month, 53,000. 31.Recorded revenue earned and billed to clients during the month, 183,500. 31.Purchased land for a future building site for 75,000, paying 7,500 in cash and giving a note payable for the remainder. 31.Withdrew cash for personal use, 1,000. 31.Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of 5,000. Instructions 1. Record the August 1 balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for August in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of August 31, 2019. 5. Assume that the August 31 transaction for Cindy Getmans cash withdrawal should have been 10,000. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?
Problem 3-71 A Preparing a Worksheet (Appendix 3A) Marsteller Properties Inc. owns apartments that it rents to university students. At December 31, 2019, the following unadjusted account balances were available: The following information is available for adjusting entries: An analysis of apartment rental contracts indicates that S3,800 of apartment rent is unbilled and unrecorded at year end. A physical count Of supplies reveals that $1,400 of supplies are on hand at December 31 , 2019. Annual depreciation on the buildings is $204,250. An examination of insurance policies indicates that $12,000 Of the prepaid insurance applies to coverage for 2019. Six months' interest at 9% is unrecorded and unpaid on the notes payable.
Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days after delivery. At what point would the event be recorded in Taylors accounting system? When Taylor signs the agreement with the seller When Taylor receives an invoice (a bill) from the setter When Taylor receives the asset from the seller When Taylor pays $2.000 cash to the seller
Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?
3. On November 1, 2020, three months' rent was paid in advance, with a value of $4,500.a) Write the journal entry to record the original purchase of the rent service in advance.b) Write the adjusting entry required, if this business uses a fiscal period of one year, onDecember 31, 2020.c) What would appear on the Balance Sheet concerning Rent on December 31, 2020?d) What would appear on the Income Statement concerning Rent for the year endingDecember 31, 2020?
2. Entity A is renting out its building to a tenant for a monthly rent of ₱30,000. As of December 31, 20x1, the tenant has not yet paid the rent for the months of November and December. What is the adjusting entry to take up accrued rent income on December 31, 20x1?
Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2019 ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,800.00 2 Accounts Receivable 58,900.00 3 Prepaid Insurance 2,900.00 4 Office Supplies 1,500.00 5 Land 6 Accounts Payable 12,700.00 7 Unearned Rent 8 Notes Payable 9 Lester Wagner, Capital 41,000.00 10 Lester Wagner, Drawing 1,500.00 11 Fees Earned 242,600.00 12 Salary and Commission Expense 145,300.00 13 Rent Expense 35,000.00 14 Advertising Expense 16,600.00 15 Automobile Expense 5,000.00 16 Miscellaneous Expense 3,800.00 17 Totals 296,300.00 296,300.00 The following business transactions were completed by Elite Realty in…
Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2019 ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,800.00 2 Accounts Receivable 59,500.00 3 Prepaid Insurance 3,500.00 4 Office Supplies 2,200.00 5 Land 6 Accounts Payable 12,800.00 7 Unearned Rent 8 Notes Payable 9 Lester Wagner, Capital 46,000.00 10 Lester Wagner, Drawing 2,300.00 11 Fees Earned 236,300.00 12 Salary and Commission Expense 148,200.00 13 Rent Expense 28,000.00 14 Advertising Expense 16,800.00 15 Automobile Expense 5,100.00 16 Miscellaneous Expense 3,700.00 17 Totals 295,100.00 295,100.00 The following business transactions were completed by Elite Realty…
Please answer in good accounting form Thankyou 1. How much is to be reported in the statement of financial position as lease liability for the year ended December 31, 2021? 2. 2. What is the interest expense for the calendar year 2022? (round off answer to the nearest WHOLE NUMBER) 3. How much depreciation expense is to be recorded for the year ended 2021? (present answer with 2 DECIMAL PLACES)
1. The financial year of Shah Enterprise ended on 31 December 2019. Show the ledger account for the following items including the balance transferred to the necessary part of the financial statements.a) Rent expenses: Paid RM700 in 2019; owed RM30 as at 31 December 2019b) Insurance expenses: Paid RM500 in 2019; prepaid as at 31 December 2019 wasRM40c) Commission received: Received RM650 in 2019; amount accrued as 31 December2019 was RM100d) Rent received: Received RM400 in 2019; amount received in advance as at 31December 2019 was RM100 2. The following balances were extracted from the ledger of CTSha Trading as at 31 October 2019. DEBIT (RM) CREDIT (RM) Insurance 12,000 Water and electricity 4,800 Wages and salaries 16,000 Rental income 9,900 Interest income 6,000 Prepaid insurance as at 1 Nov 2018 1,500 Accrued wages and salaries as at 1 Nov 2018 2,000 Accrued rental income as at 1 Nov 2018 1,800 The following adjustment were to be…
On October 1, 20A, Myvi mascariñas realty co. collected the amount of $180,000 representing advanced rental from a tenant who occupies a space of the building. the advanced rental will cover the period from Oct. 1, 20A to Oct. 1, 20B. the accounting period ends on December 31, 20A. 1. What is the adjusting entry on December 31, 20A? 2. In your adjusting entry, what account will you record? Income or Liability?
1. The financial year of Shah Enterprise ended on 31 December 2019. Show the ledger account for the following items including the balance transferred to the necessary part of the financial statements.a) Rent expenses: Paid RM700 in 2019; owed RM30 as at 31 December 2019 b) Insurance expenses: Paid RM500 in 2019; prepaid as at 31 December 2019 was RM40c) Commission received: Received RM650 in 2019; amount accrued as 31 December 2019 was RM100d) Rent received: Received RM400 in 2019; amount received in advance as at 31 December 2019 was RM100

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