3. In other words, its expected balance is contrary to—or opposite of—the usual credit balance in a revenue account. $90,000. 11. D) debited when rent is received in advance. $30,000 . C) reported as a current liability. d. debited when rent is received in advance. A contra revenue account is a revenue account that is expected to have a debit balance (instead of the usual credit balance). Tenants' balance sheets will often have a prepaid rent asset account, and rarely an unearned rent liability account. Lv 4. $36,000. B. Collecting unearned revenue from your customers is also a task on its own. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is A. Credit 'Unearned Rental Revenue' $ 4,800. To account for this unearned rent, the landlord records a debit to the cash account and an offsetting credit to the unearned rent account (which is a liability account). 10. B) a revenue account. D. $18,000 At the beginning of the year, the Unearned Rent account has a balance of $30,000. The entry is: Debit 'Unearned Rental Revenue' $ 800. Credit 'Rental Revenue' $ 800. In accrual accounting, , is payment received by a company from a customer for products or services that will be delivered at some point in the future. b. The unearned rent account has a balance of $72,000. Is Unearned Revenue a Contra Account? $8,888. What is Unearned Revenue? The problem is that Inventory items can't be pointed at an unearned revenue liability account (like a service or non-inventory item). Accounting for unearned revenue is a simple, two-step process: recording the initial payment, and then recording an adjusting entry when the revenue is earned. Unearned revenue, sometimes referred to as deferred revenue Deferred Revenue Deferred revenue is generated when a company receives payment for goods and/or services that it has not yet earned. Unearned Rent Revenue is a. a contra account to Rent Revenue. c. $4,000. d. $1,333. Unearned revenue is revenue that the business has not yet earned, for example if the business has received an annual membership fee in advance, in month one, only one twelfth of the revenue has been earned and the remaining eleven months is unearned. The Unearned Rent account balance at the end of the year is $6,000. Unearned revenue is not a contra revenues account. d. $ 6,000 . The interest charged on a $200,000 note payable, at the rate of 8%, on a 90-day note would be a. $16,000. This is advantageous from a cash flow perspective for the seller, who now has the cash to perform the required services. Unearned Rent Revenue is A) a contra account to Rent Revenue. 2 0. scharer. b. Unearned revenue is money received from a customer for work that has not yet been performed. At the end of the first month, $800 of that prepaid rent has now been earned, and is transferred from 'Unearned Rental Revenue' to the sales/revenue account 'Rental Revenue'. 1. b. a revenue account. To get around this we either have to 1) use only non-inventory items or 2) invoice to the revenue account, journal over to unearned inventory, then journal back to revenue when we ship the product. C. $54,000. $24,000 . 2. Unearned rent, or deferred revenue as it may be called, is an account for landlords only, not tenants. c. reported as a current liability. c. $12,000 . Specialized cloud-based accounting and invoicing software such as Fresh-Books is needed to provide a trusted and long-lasting solution. Given this information, Rent Revenue for the current year must be: a. Collection of Unearned Revenue.
Petag Kmr Kitten Milk Replacer Liquid, Fallout 4 Projectile Mod, Where To Buy Tennessee Pride Sausage Biscuits, Pyrenean Shepherd Breeders Usa, Utmb Student Health Insurance, Best Universities In Norway, Best Coffee Monti Rome, Honeywell Heat Genius Canadian Tire, Cannot Open Sketchup File In Revit, Sunday Riley Tidal Uk,
