Ask Experts Questions for FREE Help !
Ask
    angel314's Avatar
    angel314 Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Feb 26, 2012, 08:55 PM
    Unearned rent
    On October 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the unearned rent acct. Record the adjustment necessary to recognize three month's rent.

    If anyone is out there is this right? I posted Rent expense 2100 and unearned rent 2100. Wasn't sure if posting was to unearned rent or prepaid rent
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Feb 27, 2012, 07:33 AM
    Debit Unearned Rent Revenue for 2,100
    Credit Rent Revenue for 2,100

    You received rent from a tenant, which is revenue to you. If you had paid for rent then it would have been rent expense.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Unearned rent [ 2 Answers ]

On a rental property

Unearned rent verses prepaid rent [ 4 Answers ]

I would like for someone to help me get a better prospective on this use of words that keeps me confused. d. The unearned rent account balance at August 31 is $9,375, representing the receipt of an advance payment on August 1 of three months' rent from tenants. That is pretty clear it is rent I...

Unearned Rent [ 6 Answers ]

Is Unearned rent on a balance sheet belong under an asset, liability or under owners equity?

Prepaid Rent and Unearned Rent [ 2 Answers ]

What is the difference between Prepaid rent & unearned rent? Is this the same. And if in the Trial balance the account name is Unearned rent, then can we put in the liabilities side as Prepaid rent?

Unearned Rent [ 2 Answers ]

I NEED HELP I have a problem that I am doing for my accounting class. I am trouble with adjusting the unearned rent and rent revenue. In the trial balance ledger: unearned rent 1,200 Adjustment was : the unearned rent on Dec. 31 was 400 How do I calculate this for the work sheet?

View more questions Search