adjustment for unearned revenue\non june 1, 20y2, monarch co. received $9,000 for the rent of land for 12…

adjustment for unearned revenue\non june 1, 20y2, monarch co. received $9,000 for the rent of land for 12 months.\njournalize the adjusting entry required for unearned rent on december 31, 20y2. assume no previous adjustment has been made to unearned revenue during the year. if an amount box does not require an entry, leave it blank.\ndec. 31

adjustment for unearned revenue\non june 1, 20y2, monarch co. received $9,000 for the rent of land for 12 months.\njournalize the adjusting entry required for unearned rent on december 31, 20y2. assume no previous adjustment has been made to unearned revenue during the year. if an amount box does not require an entry, leave it blank.\ndec. 31

Answer

Explanation:

Step1: Calculate monthly rent

The total rent received is $9000 for 12 months. So the monthly rent is $\frac{9000}{12}=750$.

Step2: Calculate rent earned from June 1 to Dec 31

From June 1 to Dec 31, there are 7 months. The rent earned is $750\times7 = 5250$.

Step3: Prepare journal entry

Debit Unearned Revenue (liability decreases) and credit Rent Revenue (revenue increases).

Answer:

Date Account Titles and Explanation Debit Credit
Dec. 31 Unearned Revenue 5250
Rent Revenue 5250