ABC company invoices customers for rent in October for the full


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ABC company invoices customers for rent in October for the full academic year (September to June). For the academic year of September 2013 to June 2014, the rental income earned from the program was $7,000 per month. Six months of rental income from the 2013-2014 academic year is recorded by the company as revenue for its 2014 fiscal year. The monthly rental income earned by the company from rent for the academic year of September 2014 to June 2015 is $8,000 per month. No other rental income was earned in the 2014 fiscal year. The December 31, 2014 unadjusted trial balance has the following account balances: Accounts receivable       Dr $48,000 Revenue – rent               Cr $122,000 What should the adjusting entry be? Should the Revenue account be debited for the amount of revenue that has not been collected (January to June 2015) 6x$8000=$48,000, would the entry be: Dr Revenue                 $48,000 Cr Unearned revenue             $48,000 Are any other entries required? Carmen1234
posted a question · Sep 17, 2015 at 1:54pm

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