Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

تمرين 7

Unearned revenues-rent On December 1, 2016, an advance rent payment of $25,800, representing a three-month prepayment for the months of December, January, and February, 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 three months of rent collected in advance on December 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.