On May 1, 2018, Stokes Company paid Eastport Rentals $31,000 for a 12-month leas

Question

On May 1, 2018, Stokes Company paid Eastport Rentals $31,000 for a 12-month lease on warehouse space Required a. Record the deferral and the related December 31, 2018, adjustment for Stokes Company in the accounting equation b. Record the deferral and the related December 31, 2018, adjustment for Eastport Rentals in the accounting equation. Complete this question by entering your answers in the tabs below. Required A Required B Record the deferral and the related December 31, 2018, adjustment for Stokes Company in the accounting equation. (Do not round intermediate calculations and round your final answer to nearest whole dollar. Enter any decreases to account balances with a minus sign.) STOKES COMPANY Accounting Equation - 2018 Assets =| Liabilities | +| Stockholders' Equity Prepaid Common+ Retained Earnings Event Cash Rent ! Stock Paid 12 months rent Adjustment for 8 months used

Explanation / Answer

STOKES COMPANY Cash Prepaid rent Liabilities Common Stock Retained earnings Paid 12 months rent -31000 31000 Adjustment for 8 months used -20667 -20667 EASTPORT RENTALS Cash Unearned revenue Common Stock Retained earnings Received 12 months rent 31000 31000 Earned 8 months rent -20667 20667

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