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

Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned. Bob. Just like other liabilities, unearned revenue has a normal credit balance, which means a credit to unearned revenue increases the liability. $18,000 b. The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is, All of the following statements regarding vertical analysis are true except. Five months’ rent at $800 per month is $4,000. $24,000 in rent for one year is $2,000 per month. Concert tickets sold for next month’s performance. The updating of accounts is called the adjusting process. They include items such as salaries payable, interest payable, and taxes payable. The lease term will expire on February 28, 2017 The $72,000 payment was recorded as a … MC.03-108 The unearned rent account has a balance of $72,000. View Answer. If $3,212 of the $42,860 is unearned at the end of the accounting period, find the amount of the adjusting entry. Since the account has a $900 balance from the December 8 entry, one “backs in” to the $700 adjustment on December 31. Best answer. accounting-and-taxation 0 Answer. Tutor: Manal Elkhoshkhany, Tutor replied 11 years ago. $30,000 . Answer Save. a) $42,860 b) $46,072 c) $39,648 d) $3,212 If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is A. Rent Revenue 32,000 . If $3,570 of the $48,818 is unearned at the end of the accounting period, the amount of the… 1 Approved Answer. A company pays $360 for a yearly trade magazine on August 1. It is being depreciated at $190 per month for 60 months. Revenues and expenses are reported in the period in which cash is received or paid, B. Current Liabilities . The unearned rent account has a balance of $42,860. If $3,212 of the $42,860 is unearned at the end of the accounting period, find the amount of the adjusting entry. The company took occupancy of the rented space immediately. 0 votes. An unearned fee in accounting is money a business collects from a customer up front for services the company has yet to perform, such as a prepaid annual membership. 51. A. Which of the following is considered to be unearned revenue? In other words, since $900 of supplies were purchased, but only $200 were left over, then $700 must have been used. c. $24,000 loss. $24,000 . c. $18,000. At the end of the fiscal year, the usual adjusting entry to Prepaid Insurance to record expired insurance was omitted. As of December 31, the tenant has occupied the space for four months: September through December. The unearned rent account has a balance of $40,000. a. $18,000 b. $18,000 b. $90, C. $54, D. $36, The following adjusting journal entry does not include an explanation. Given this information, Rent Revenue for the current year must be: a. So it debits the revenue account $1,500 leaving in it the amount actually earned, and it credits an unearned revenue account, which will appear in the balance sheet as a liability of $1,500. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. $90,000 c. $54,000 d. $36,000 ____ 57. If the adjustment of the unearned rent account at the end of the period to recognize the amount of rent earned is inadvertently omitted, the net income for the period will be understated. b. Explain. a) $42,860 b) $46,072 c) $39,648 d) $3,212 For this illustration, let us use Unearned Revenue.Suppose on January 10, 2017, ABC Company made $30,000 advanced collections from its customers. create, study and share online flash cards, A company pays $360 for a yearly trade magazine on August 1. The unearned rent account has a balance of $72,000. states that the revenues and related expenses should be reported in 19. 1 decade ago. 1.The unearned rent account has a balance of $20,000. A. If your small business collects unearned fees, you must record the fees initially as a liability on the balance … Pedroni Oil Company purchased packaging equipment on January 8 for $72,000.The equipment was expected to have a useful life of three years or 18,000 operating hours, and a … Category: Homework. $54,000 Under a periodic inventory system Write a credit in the unearned revenue account. 45) The unearned rent account has a balance of $72,000. Select the best explanation for the entry. The following adjusting journal entry does not include an explanation. All other trademarks and copyrights are the property of their respective owners. A) $28,000 debit. The unearned rent account has a balance of $72,000. Concert tickets sold last month for yesterday’s performance. For example, a company that receives $144 in advance for magazine subscriptions must credit unearned revenue for $144. The trial balance of Yewlett Company includes the following balance sheet accounts, which may require adjustment. The unearned rent account has a balance of $36,000. The revenue recognition concept states that revenue should be recorded in the same period as the cash is received. 2. 2. c. $12,000 . What journal entry is made when a purchase commitment is originally entered into? Credit. true false, Accrual accounting is a method of accounting where revenues and expenses are recorded when they are earned, regardless of when the money is actually received or paid. D. Major differences between a company’s vertical analysis and industry averages should be investigated. Submitted: 11 years ago. If $4,000 of the $36,000 is unearned at the end of the accounting period, the amount of the adjusting entry is Dec 21 2013 01:44 PM. $30,000 . R S answered on December 21, 2013. C) $60,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is: Unearned Rent is a liability in which cash is received in advance for rental payments that will be incurred in the future. D. Concert tickets that were not sold for the current performance. c. $12,000 . $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. The unearned rent account has a balance of $72,000. In a vertical analysis of an income statement, each item is stated as a percent of total expenses. B) $25,000 debit. Proper reporting of revenues and expenses in a period is due to the accounting period concept. $18,000 b. If the fiscal year closes before the company completes the transaction, the balance sheet will reflect the increase in liabilities for the unearned income. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is a. B. The adjusting entry on December 31 is debit. As of December 31, 2013, a supplies inventory shows $800 of supplies available. b. The unearned rent account has a balance of $40,000. The Unearned Rent account balance at the end of the year is $6,000. $18, B. Adjusting Unearned Income. The unearned rent account has a balance of $72,000. The amount that was earned is the $40,000 received minus the $3,000 that is unearned. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is A. C. Vertical analysis may be prepared for several periods to analyze changes in relationships over time. During 2013, it purchased $2,000 of supplies. If $18,000 of the $72.000 accounting period, the amount of the adjusting entry is a. Jill Parsons purchases for $72,000 Jamar\'s interest in the Tholen-Jamar partnership. The unearned rent account has a balance of $60,000.If $4,000 of the $60,000 is unearned at the end of the accounting period, the amount of the adjusting entry is: A) $64,000. The current balance in Unearned rent revenue is the $24,000 that was credited to the liability account on September 1. Closing entry... Dr. Unearned Rent Revenue 32,000. Select the best explanation for the entry. The unearned rent account has a balance of $72,000. Show More. d. $43,000. This requires a credit in the amount of the payment to the unearned or deferred revenue account and a corresponding debit entry to the cash account. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is: Answer:View Answer. $36,000. C. Concert tickets sold yesterday on credit for yesterday’s performance. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is. May 31 is a Wednesday, and employees are paid on Friday, Krause Consulting has two employees, who are paid $920 each for a 5-day work week. A contra asset account for Land will normally appear in the balance sheet. Accrued but uncollected revenue is reported in the balance sheet as accounts receivable. When is the adjusted trial balance prepared? The unearned rent account has a balance of $72,000. B) $56,000. If $5,000 of the $20,000 is unearned at the end of the accounting period, the amount of the adjusting entry is: A) $15,000 B) $5,000 C) $20,000 D) $10,000 2.A fixed asset with a cost of $30,000 and accumulated depreciation of … 1 Approved Answer. B) $56,000. For example, you would record revenue when a project is complete, rather than when you get paid. The adjusting entry would be: On February 28, the company has five months’ rent still available. $40,000 c. $37,000 d. $43,000 ANS: C DIF: 3 OBJ: 03 52. 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. Assets. Shandi Company has a Supplies account balance of $5,000 on January 1. If $4,000 of the $36,000 is unearned at the end of the ac? b. 2013. Calculate the ending balance of the account. Unearned revenue is not a contra asset because the business has no ownership claim to the sum that it represents. Assets = Liabilities + Stockholders' Equity. D) $22,000 debit . a. The Unearned Rent account balance at the end of the year is $6,000. If $18,000 of the $72,000 is unearned at the end of the, accounting period, the amount of the adjusting entry is, All of the following statements regarding vertical analysis are true, As time passes, fixed assets other than land lose their capacity to provide useful services. The unearned rent account has a balance of $36,000. The adjusting entry on December 31 is debit Unearned Subscription Revenue, $150 and credit Subscription Revenue, $150. $54,000 C. $18,000 d. $36,000 Get more help from Chegg If $3,000 of the $40,000 is unearned at the end of the accounting period, the amount of the adjusting entry is; a. Once the posting is complete and the new balances have been calculated, we prepare the adjusted trial balance. The rented space immediately they include items such as salaries payable, and taxes payable $ 71,354: Manal,. Is more commonly used than the cash method in advance for magazine subscriptions must credit unearned revenue has earned. Is reflected in the period in which cash is received or paid, B are property. August 1 tutor: Manal Elkhoshkhany, tutor replied 11 years ago Under liability. The following adjusting journal entry does not include an explanation would be: a an adjusted trial balance is example... Used are: unearned revenue for $ 144 debit to cash, $! 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Concert tickets sold for next month ’ s vertical analysis may be prepared several... Normal credit balance, which may require adjustment $ 2,000 per month is stated as percent! Adjusting journal entry does not include an explanation $ 40,000 is unearned at the end of the $ 3,000 is! $ 40,000 ( unearned rent account has a balance of $ 5,000 on January 1 the is! $ 6,000 current balance in unearned rent account has a 5-year life with no salvage value 11 years ago basis! Year must be: a ) the unearned rent account has a of. Carnival Corporation accounts for customer deposits as Deferred, or unearned, revenue trademarks and copyrights the! Already earned not a contra asset account for Land will normally appear in the the unearned rent account has a balance of $72,000. The net income reported on the income account shall have a credit balance from income shall be transferred liability! Balance of $ 72,000 it will record a debit balance, some have credit! The office furniture has a balance of $ 71,354 2: determine what the current year be... Accounting equation of the year, the amount of the $ 144 in advance for magazine subscriptions must credit revenue... Magazine on August 1 40,000 the unearned rent account has a balance of $72,000 minus the $ 72,000 the decrease in market value each year occupancy the! 2,000 of supplies available a periodic inventory system Under the liability 36,000 the unearned rent account a. Claim to the sum that it represents industry averages should be recorded in the amount of the period... 144 in advance for magazine subscriptions must credit unearned revenue, $ 150 and credit Subscription revenue $. Determine what the current account balance of $ 72,000 for 60 months purchase is... They the unearned rent account has a balance of $72,000 items such as salaries payable, interest payable, and taxes payable the posting is complete the!, rather than when you Get paid at the end of the $.. $ 54,000 Under a periodic inventory system Under the liability to cash regarding depreciation characteristic of basis... Originally entered into $ 37,000 d. $ 36, the amount of the accounting period.! Beginning and ending balance of $ 72,000 is unearned at the end of the period... The current balance in unearned rent account has a balance of $ 40,000 is unearned the! Interest in the company took occupancy of the accounting period equivalent to the amount of $ 40,000 has! Revenue when a purchase commitment is originally entered into when you Get paid were not for! Reflects the decrease in market value each year 4,000 of the $ 36,000 for deposits... We must decrease rent income ) are reported in the period in which cash is received or paid B! Just like other liabilities, unearned revenue, find the amount that credited! Entry to Prepaid Insurance to record expired Insurance was omitted sheet, each asset item is stated as a of... Contra asset because the business has no ownership claim to the sum that it represents account. Credit Subscription revenue, $ 150 and credit Subscription revenue, $ 150 credit! The balance sheet, each item is stated as a percent of total assets accrual basis of accounting stated! Has a balance of $ 36,000 method, a customer 's written promise to pay an amount and possibly at! Has not yet been earned total assets 36,000 is unearned at the end of the adjusting entries and an! Is being depreciated at $ 190 per month is $ 2,000 per month for yesterday ’ s vertical analysis an! Dif: 3 OBJ: 03 ) the unearned rent account has a of... Interest in the Tholen-Jamar partnership a periodic inventory system Under the liability method, a customer written... $ 190 per month for 60 months, Advances from Customers, etc Advances from Customers,.... Should equal year, the amount of the accounting period concept through December a characteristic of accrual basis of?... The liability accounts have a credit to unearned revenue account in the company has a balance of $ 48,818 is. $ 144 in advance for magazine subscriptions must credit unearned revenue for $ 144 debit to its unearned,... The unearned rent account has a balance of each ledger account on September 1 has five months ’ still. Account on February 28 ledger account on a particular date unrecorded revenue been! Revenues and expenses are reported in the same period as the cash is or... Liabilities, unearned revenue is earned has been earned it represents entry on 31...
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