contestada

Fragmental Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $825. Fragmental collected the entire $6,600 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Company on December 31 would be:

Respuesta :

Debit to Unearned Rent

Credit to Rent Earned for $2,475

Given:

Amount of total rent = $6,600

Computation:

Rent income refers to revenue earned from leasing out properties, such as commercial spaces, to third parties.

Amount unearned = Amount of total rent (3months / 8 months)

Amount unearned = 6,600 [3/8]

Amount unearned = $2,475

Journal entry:

Unearned rent A/c Dr $2,475

Rent A/c Cr $2,475

[Debit to Unearned RentCredit to Rent Earned for $2,475]

Learn more about Adjusting Entry here:

https://brainly.com/question/13933471

#SPJ4

Otras preguntas