Journalize the adjusting entries at August 31, 2006



On August 25, a local business contracted with doon cove to rent one of the cottages for six months, starting October 1 at a rate of 1,400 per month. An advane payment equal to two months rent to be paid on September 5

On August 25, I primose to rent your cottage from October to March.

I also promise to pay you an advance in September.

On Aug 31, you are wondering what JE to do?

The answer would be none. You have not preformed the service and I have not given you any money.