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    kocuaa's Avatar
    kocuaa Posts: 1, Reputation: 1
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    #1

    Dec 12, 2011, 06:04 PM
    Adjusting entry
    I have a trouble to answer question: 3months rent totaling $6000 was collected and recorded on November 1. The adjusting entry includes:
    1. A Dr. To rent expense $2000
    2. A Dr. To rent expense $4000
    3. A Cr. To rent revenue of $2000
    4. A Cr. To unearned rent of $4000
    5. A Dr to unearned rent of $4000
    lauriewisc's Avatar
    lauriewisc Posts: 2, Reputation: 1
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    #2

    Dec 12, 2011, 06:34 PM
    Debit cash for $6000. Credit rent revenue for $2000 and credit prepaid rent (a liability) for the $4000. When you earn the rent in the month due you debit the prepaid and credit the revenue.

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