Question

Landmark Properties owns and operates an apartment building and prepares annual financial statements based on a March 31 fiscal year-end.

1. The tenants of one of the apartments paid five months' rent in advance on November 1, 2019. The monthly rental is $2,200 per month. The journal entry credited the Unearned Rent account when the payment was received. No other entry had been recorded prior to March 31, 2020.
2. On January 1, 2020, the tenants of another apartment moved in and paid the first month's rent. The $2,650 payment was recorded with a credit to the Rent Revenue account. However, the tenants have not paid the rent for February or March. They have agreed to pay it as soon as possible.
3. On April 22, 2020, the tenants described in (b) paid $7,950 rent for February, March, and April.

Required:
Prepare the adjusting journal entry for each of (a) and (b) that should be recorded on March 31, 2020 and the subsequent entry to record the cash collection in (c).

2. MODERN is a store with trendy and affordable furniture. MODERN has five part-time employees, each of whom earns $210 per day. They are normally paid on Fridays for work completed on Monday through Friday of the same week. They were all paid in full on Friday, December 25, 2020. The next week, all five of the employees worked only four days because New Year’s Day was an unpaid holiday. Show the adjusting entry that would be recorded on Thursday, December 31, 2020, MODERN’s year-end, and the journal entry that would be made to record paying the employees’ wages on Friday, January 1, 2021.

prepare 2 journal entries

Answer 1

Ans 1			in $
Date	Accounts Title	Dr	Cr
Mar-31	Unearned Rent Revenue	$11000
a)	Rent revenue (2200*5)		11000
	(being uneraned revenue adjusted)
Mar-31	Rent Receivable (2650*2)	5300
b)	Rent Revenue		5300
	(being rent revenue recorded)
c
Apr-22	Cash	7950
	Rent Receivable (2650*2)		5300
	Rent Revenue		2650
ans 2
Dec 31 2020	Salaries & Wages expenses	4200
	Salaries & Wages payable (210*5*4)		4200
	(being and wages accured)
Jan 1 2021	Salaries & Wages payable (210*5*4)	4200
	Cash		4200
	If any doubt please comment