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    happy77's Avatar
    happy77 Posts: 2, Reputation: 1
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    #1

    Aug 26, 2007, 09:08 AM
    Adjusting accounts
    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.
    happy77's Avatar
    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: 3,645, Reputation: 393
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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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