jenkins rentals company faced the following situations. view the situations. requirement 1. journalize the…

jenkins rentals company faced the following situations. view the situations. requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately. (record debits first, then credits. exclude explanations from any journal entries.) a. the business has interest expense of $3,100 that it must pay early in january 2024. accounts debit credit a. interest expense 3,100 interest payable 3,100 b. interest revenue of $4,400 has been earned but not yet received. accounts debit credit b. interest receivable 4,400 interest revenue 4,400 c. on july 1, 2023, when the business collected $14,200 rent in advance, it debited cash and credited unearned rent revenue. the tenant was paying for two years rent. accounts debit credit c.

jenkins rentals company faced the following situations. view the situations. requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately. (record debits first, then credits. exclude explanations from any journal entries.) a. the business has interest expense of $3,100 that it must pay early in january 2024. accounts debit credit a. interest expense 3,100 interest payable 3,100 b. interest revenue of $4,400 has been earned but not yet received. accounts debit credit b. interest receivable 4,400 interest revenue 4,400 c. on july 1, 2023, when the business collected $14,200 rent in advance, it debited cash and credited unearned rent revenue. the tenant was paying for two years rent. accounts debit credit c.

Answer

Explanation:

Step1: Calculate monthly rent revenue

The tenant paid $14,200 for two - year (24 months) rent on July 1, 2023. The monthly rent revenue is $\frac{14200}{24}$. From July 1, 2023 to December 31, 2023 is 6 months.

Step2: Calculate rent revenue for 2023

The rent revenue for 2023 is $\frac{14200}{24}\times6=\frac{14200}{4}=3550$. We need to debit Unearned Rent Revenue (to reduce the liability) and credit Rent Revenue (to recognize the earned revenue).

Answer:

Accounts Debit Credit
Unearned Rent Revenue 3550
Rent Revenue 3550