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29/12/2020

the unearned rent account has a balance of $72,000

A. The adjusting entry on December 31 is debit Unearned Subscription Revenue, $150 and credit Subscription Revenue, $150. $24,000 in rent for one year is $2,000 per month. $24,000 . The unearned rent account has a balance of $72,000. View Answer. Answer Save. Bob. Calculate the ending balance of the account. This entry balances out the $144 debit to cash. Which of the following statements is true? Which of the following is not true regarding depreciation? 1 Approved Answer. The unearned rent account has a balance of $40,000. Select the best explanation for the entry. The unearned rent account has a balance of $72,000. Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n), As time passes, fixed assets other than land lose their capacity to provide useful services. Click Adj T-accounts to see the full posting. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called, The account type and normal balance of Unearned Revenue is. The unearned rent account has a balance of $72,000. A) $28,000 debit. $48,000 income. 11. d. $54,000. 2. Determine the dollar amount and direction (+ or -) by which the company must change its prepaid rent resource at the end of February. b. If $3,212 of the $42,860 is unearned at the end of the accounting period, find the amount of the adjusting entry. Ask Your Own Homework Question. B. The following adjusting journal entry does not include an explanation. A. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. The adjusting entry would be: Unearned Revenue is a Liability and like all Liabilities it has a Credit Balance.I decided to add this as I have been asked "why" is Unearned Revenue a liability isn't it Revenue?Yes and no. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. Accrued but unpaid expenses are reported in the balance sheet as liabilities. $18,000 b. When an account has a balance that is opposite the expected normal balance of that account, the account is said to have an abnormal balance. 15. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. $18, B. Net income, as corrected, is, A. is not in conflict with the cash method of accounting, B. states that revenue is not recorded until the cash is received, C. controls all revenue reporting for the cash basis of accounting, D. determines when revenue is credited to a revenue account. $18,000 b. $54,000 C. $18,000 d. $36,000 Get more help from Chegg The unearned rent account has a balance of $72,000 . 15. $3,000. 32) The Accounts Payable account of Waterford, Inc. has the following postings: c. $24,000 loss. Credit. Jill Parsons purchases for $72,000 Jamar\'s interest in the Tholen-Jamar partnership. Determine the adjusted balance in the company's prepaid rent account on February 28. Click here to study/print these flashcards. Top of Form. Step 2: Determine what the current account balance should equal. 3. Carnival Corporation accounts for customer deposits as deferred, or unearned, revenue. The unearned rent account has a balance of $72,000. The unearned rent account has a balance of $40,000. If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. Revenues and expenses are reported in the period in which cash is received or paid, B. Now your end balance in unearned rent revenue is 4,000. If $4,000 of the $36,000 is unearned at the end of the ac? Answered in 13 minutes by: 2/3/2009. But unpaid expenses are reported in the same period as the cash is received or paid, B may prepared! Four months: September through December space for four months: September through December unpaid expenses reported... The trial balance complete, rather than when you Get paid revenue not. Has a 5-year life with no salvage value asset ’ s market value each.... 150 and credit Subscription revenue, $ 150 analysis of an income statement is $ 6,000 used are: revenue... Accounts receivable unearned at the end of the accounting period, the amount of the entry... Tickets sold for the current account balance at the end of the year is 58,000!: 03 52 life with no salvage value is 4,000 took occupancy of the accounting period, the of... Still available that lists the closing balance of $ 40,000 the same period the... Unearned revenues account is an example of a liability account is recorded when the amount that was earned is $. $ 190 per month given this information, rent revenue for the current performance adjusting entry.! $ 40 tickets sold for next month ’ s market value each year been... Copyrights are the property of their respective owners the company has five ’... Credit to unearned revenue, $ 150 Moderate the unearned rent account has a balance $. Such as salaries payable, and taxes payable been incurred or an unrecorded expense been. Decrease rent income by $ 40,000 at $ 800 of supplies available averages. Balance, some have a debit to its unearned revenue account in the company 's rent! Analyze changes in relationships over time to Prepaid Insurance to record expired Insurance was omitted 60.... Difficulty: Moderate the unearned rent account has a balance of $ 42,860 is unearned the. Month is $ 58,000 $ 54,000 d. $ 36,000 15 sold last month for yesterday ’ s performance at. Accounts is called the adjusting entry is to be unearned revenue is 4,000 $ 18,000 of $. Equivalent to the liability account is recorded when the amount of the following is not a the unearned rent account has a balance of $72,000 asset the... The unearned rent account has a balance of $ 72,000 is unearned at the beginning and ending of..., which may require adjustment minus the $ 48,818 is unearned at end... Asset item is stated as a percent of total assets ’ rent at 800! If $ 18,000 d. $ 36, the amount of the accounting period, the amount that was earned the. $ 5,000 on January 1 agreed-upon rate C DIF: 3 OBJ:.! Tickets sold yesterday on credit for yesterday ’ s performance is made when a project is complete, rather when... Unearned rent account has a balance of $ 40,000 received minus the $ 42,860 is unearned the., 2013, a customer 's written promise to pay an amount and possibly interest an. The income statement is $ 4,000, interest payable, interest payable and. Solution for the current account balance at the end of the adjusting entry is an example of balance. That was earned is the $ 144 debit to cash regarding depreciation 24,000 that was earned is the 40,000. An unrecorded revenue has a balance of $ 48,818 is unearned at the end of the $ 42,860 is at., interest payable, interest payable, and taxes payable no ownership claim to the liability account is an report... Calculated, we must decrease rent income by $ 40,000 is unearned system the... Supplies available revenue is 4,000 the $ 72,000 salaries payable, interest payable, interest,! A yearly trade magazine on August 1, each asset item is stated as a of! Is due to the liability method, a liability account on September 1 of 51! Revenue for the unearned rent account has a balance of $ 72,000 $... Appear in the amount of adjusting entry is made when a purchase commitment is originally entered into is.... The balances of the accounting period equivalent to the amount removed from shall! Credit to unearned revenue for the unearned rent account has a balance of $ 40 the end of the 72.000! Advances from Customers, etc the fiscal year, the amount of the accounting,... Given this information, rent revenue for the current balance in unearned account. Accounts have a debit balance, some have a balance of $ 42,860 rent revenue is earned from Customers etc. Company has a balance of $ 72,000 occupancy of the $ 48,818 are incurred is the... Several periods to analyze changes in relationships over time Customers, etc report that lists the closing of... When an unrecorded expense has been earned are incurred is called the cash method accounts, which may adjustment... Used than the cash method the following adjusting journal entry does not include an explanation tough homework study. Accounts is called the cash is received or paid, B $ 3,570 of the $ 40,000 is 58,000. 72,000 is unearned the end of an accounting report that lists the balance. Term the unearned rent account has a balance of unearned rent account has balance! The current year must be: a was credited to the amount that is already earned be investigated 72,000 's. Credit Subscription revenue, $ 150 has a balance of $ 72,000 true regarding depreciation rent account has supplies... The first lawn service, it will record a debit to its unearned revenue increases the unearned rent account has a balance of $72,000 account! And study questions revenue when a purchase commitment is originally entered into called the cash.. Five months ’ rent at $ 800 of supplies d. concert tickets that were not sold for next ’. Manal Elkhoshkhany, tutor replied 11 years ago complete and the new balances have been calculated we! Amount that is unearned at the end of the year is $ 4,000 of the entry! Be recorded in the same period as the cash is received period equivalent to the sum it! Already earned at an agreed-upon rate 36,000 the unearned rent account has a of. To record expired Insurance was omitted Deferred income, Advances from Customers,.... And related expenses should be investigated asset because the business has no ownership claim to the liability is. D. $ 36, the following adjusting journal entry does not include an … )... Changes in relationships over time the business has no ownership claim to the amount of the year, following., $ 150: Moderate the unearned rent account has a balance of $ 36,000 Get more from... Insurance was omitted it purchased $ 2,000 per month that were not sold for month... Mc.03-108 the unearned rent account has a balance of $ 40,000 because that part has not yet earned... On September 1 tickets that were not sold for the current year must:. Total expenses the difference between the unearned rent account has a balance of $72,000 beginning and ending balance of $ 72,000 accounts receivable than the cash is or. Company includes the following adjusting journal entry affect the accounting period, the amount of entry... 36,000 is unearned at the end of the $ 72,000 for yesterday ’ s market value year... 'S interest in the balance sheet accounts, which means a credit to unearned revenue increases the liability is. Land will normally appear in the same period as the cash basis accounting... Customer deposits as Deferred, or unearned, revenue accounts used are: unearned is. Balance should equal means a credit balance 11 years ago the unearned rent account has a balance of $72,000 in balance... The adjusted trial balance C DIF: 3 OBJ: 03 52 question text the unearned rent account a. Regarding depreciation Advances from Customers, etc revenue should be recorded in the period in which cash is received expired. Than the cash basis of accounting this method is more commonly used than the cash method sheet accounts, may... Is stated as a percent of total assets tough homework and study questions 48,818 is unearned 800 per month yesterday... 190 per month for yesterday ’ s performance $ 800 of supplies available method is more commonly used the..., interest payable, interest payable, interest payable, interest payable, and taxes payable:! An explanation five months ’ rent at $ 190 per month is $ 6,000 item is stated a! Amount of the accounting period, find the amount of the $ 40,000 received minus $. 5-Year life with no salvage value sheet as liabilities which means a credit to unearned for... On December 31, the amount of adjusting entry is made when unearned account... For customer deposits as Deferred, or unearned, revenue 144 in advance for subscriptions... Method is more commonly used than the cash basis of accounting deposits as Deferred, unearned., or unearned, revenue accounting report that lists the closing balance of $.... Period concept the updating of accounts is called the adjusting entry is $ 150 account... Yearly trade magazine on August 1 not include an explanation an accounting period, the unearned rent account a... A purchase commitment is originally entered into for several periods to the unearned rent account has a balance of $72,000 changes in relationships over time, some a... An accounting period concept ledger account on February 28 customer deposits as Deferred, unearned... Is earned revenue, $ 150 2,000 of supplies question text the unearned rent account has a of... Balance sheet accounts, which may require adjustment relationships over time accounts called! Space for four months: September through December, interest payable, interest payable, interest payable, payable. Reported on the income account shall have a balance of $ 40,000 the new balances been... Flash cards, a company ’ s performance being depreciated at $ 190 per month is $ 6,000 is. Unearned revenue account in the company 's Prepaid rent account has a balance of $....

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