On November 1, 2016, an advance rent payment of $15,000, representing a six-month prepayment (for the rental period beginning on that date) was received in cash from the company's tenant.Required:
Use the horizontal model (or write the journal entries) to record the effects of the following items:
(a.) The six months of rent collected in advance on November 1, 2016.(b.) The adjustment that will be made at the end of each month to show the amount of rent "earned" during the month.

Question

Quizplus · Accepted Answer

The Answer of On November 1, 2016, an advance rent payment of $15,000, representing a six-month prepayment (for the rental period beginning on that date) was received in cash from the company's tenant.Required:
Use the horizontal model (or write the journal entries) to record the effects of the following items:
(a.) The six months of rent collected in advance on November 1, 2016.(b.) The adjustment that will be made at the end of each month to show the amount of rent "earned" during the month.

On November 1, 2016, an Advance Rent Payment of $15,000