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?

If you have 1,200 of unearned rent at the beginning and now at the end of the year you only have $400 left, that means that you USED (1,200-400) $800 worth of rent.

Dr. Rent Expense 800
Cr. Unearned Rent 800

Here is another suggestion:

Unearned rent, is an liability and is recognized when recording a deposit received by a landlord renting an apartment to a student. Prepaid and unearned rent and security are recoverable by the tenant
Below are websites on how a work sheet should be presented using Microsoft software. The information is an example and does not reflect the answer but, how to get the answer.

[url]http://www.johnwiley.com.au/highered/accounting/faia5e/student-res/workedproblems/Ch_004_FAIA_5e.pdf[/url

Hope this is helpful.