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.

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.

Answer

Explanation:

Step1: Calculate rent revenue for 2023

The tenant paid for 2 - year rent on July 1, 2023. The total rent is $14,200 for 24 months. For the 6 - month period from July 1, 2023 to December 31, 2023, the rent revenue is $\frac{14200}{24}\times6 = 3550$.

Step2: Record adjusting entry

Debit Unearned Rent Revenue to reduce the unearned amount and credit Rent Revenue to recognize the earned revenue.

Answer:

Accounts Debit Credit
Unearned Rent Revenue 3550
Rent Revenue 3550