Question

On October 1, 2009, Nautilus co. received 15, 300 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 2009.

Answer 1

Ans.	Date	Particulars	Debit	Credit
	31-Dec	Unearned Rent	$3,825
		Rent Revenue		$3,825
		(Unearned rent received recorded)
	*The journal entry is made on December 31 it means that the unearned rent
	is for 3 months (1 Oct. - 31 Dec).
	*Calculations for Unearned rent received:
	Total amount received is $15,300 which is for 12 months.
	Unearned rent received for 3 months =   $15,300 / 12 * 3
		$3,825