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Adjusting accounts

Asked Aug 26, 2007, 09:08 AM — 2 Answers
At the end of year $2,200 of the previously recorded $4,800 Rental Income has not been earned. What is the second account I'm touching (besides Unearned Rental Income.

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happy77 Posts: 2, Reputation: 1
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#2

Aug 26, 2007, 09:37 AM
Accounts receivable/asset. I answered my own question! Let's hope it's right.
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CaptainForest Posts: 3,684, Reputation: 2085
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#3

Aug 26, 2007, 02:17 PM
I find it best to think through all JE when trying to figure out what the adjustment should be:

The JE that WAS made was:
Dr. Cash/AR 4,800
Cr. Rental Income 4,800

You should have only recorded 2,600

Therefore, you need to:
Dr. Rental Income 2,200
Cr. Unearned Rental Income 2,200
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