If an apartment leasing company receives the rent for January 2018 from a tenant in December 2017,this will be reported by the leasing company as:

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When the rent check is received in December 2017,the leasing company will debit Cash and credit Deferred Revenue,a liability.That liability will be reported on the balance sheet at the end of December 2017.The requirement under accrual basis accounting is to record revenues when the performance obligation is satisfied.Since the performance obligation will be satisfied in January,rent revenue will be recorded on the income statement during January 2018.

If an Apartment Leasing Company Receives the Rent for January