Answered: Adjustment for Unearned Revenue On June…

Adjustment for Unearned Revenue On June 1, 2018, Herbal Co. received $18,900 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 2018.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 3.5BE: Adjustment for unearned revenue On June 1, 2018, Herbal Co. received 18,900 for the rent of land for...

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Question

Adjustment for Unearned Revenue

On June 1, 2018, Herbal Co. received $18,900 for the rent of land for 12 months.

Journalize the adjusting entry required for unearned rent on December 31, 2018.

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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