Brief Exercise 3-6 Kingbird Corporation owns a warehouse. On November 1, it rent

Question

Brief Exercise 3-6

Kingbird Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $3,360 received in advance. Prepare Kingbird’s November 1 journal entry and the December 31 annual adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Explanation / Answer

Journal entry :

Date account and explanation debit credit Nov 1 Cash 3360 Unearned rent revenue 3360 (To record advance received) Dec 31 Unearned rent revenue (3360/3*2) 2240 Rent revenue 2240 (To record rent revenue)

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