The following unadjusted amount was reported on Rental Entertainment Corporation's accounting records at December 31, 2015:
Unearned Subscription Revenue $ 36,000
A Determine the effect on the accounting equation of any adjusting entries necessary at
December 31, 2015, for each of the following transactions:
1 During the year, Rental Entertainment sold 12-month subscriptions for its newly developed Internet service. Half of the subscriptions began October 1, 2014, while the other half began December 1, 2015.
2 Rental estimates its income taxes to be 30 percent of its estimated income of
$60,000
B
Prepare the current liabilities section of Rental's balance sheet by listing any current
liabilities and the related amounts as a result of the adjustments in Part A

Question

The following unadjusted amount was reported on Rental Entertainment Corporation's accounting records at December 31, 2015:
Unearned Subscription Revenue $ 36,000
A Determine the effect on the accounting equation of any adjusting entries necessary at
December 31, 2015, for each of the following transactions:
1 During the year, Rental Entertainment sold 12-month subscriptions for its newly developed Internet service. Half of the subscriptions began October 1, 2014, while the other half began December 1, 2015.
2 Rental estimates its income taxes to be 30 percent of its estimated income of
$60,000
  B
Prepare the current liabilities section of Rental's balance sheet by listing any current
liabilities and the related amounts as a result of the adjustments in Part A

Quizplus · Accepted Answer

The Answer of The following unadjusted amount was reported on Rental Entertainment Corporation's accounting records at December 31, 2015:
Unearned Subscription Revenue $ 36,000
A Determine the effect on the accounting equation of any adjusting entries necessary at
December 31, 2015, for each of the following transactions:
1 During the year, Rental Entertainment sold 12-month subscriptions for its newly developed Internet service. Half of the subscriptions began October 1, 2014, while the other half began December 1, 2015.
2 Rental estimates its income taxes to be 30 percent of its estimated income of
$60,000
  B
Prepare the current liabilities section of Rental's balance sheet by listing any current
liabilities and the related amounts as a result of the adjustments in Part A

The Following Unadjusted Amount Was Reported on Rental Entertainment Corporation's