The accounting records of Timberline Lodge are maintained on the basis of a fisc
ID: 2339025 • Letter: T
Question
The accounting records of Timberline Lodge are maintained on the basis of a fiscal year ending April 30. The facts listed below are to be used for making adjusting entries at April 30, 2018.
Required: Prepare the adjusting entries needed by Timberline Lodge on April 30, 2018.
A bus to carry guests to and from the airport had been rented beginning early on
April 19 from Truck Rentals, Inc., at a daily rate of $60. No rental payment has
yet been made although the bus has been used for 12 days in April.
Explanation / Answer
Answer
Hence, rental revenue for 12 days in April is earned but not received.
Rental Income receivable = 12 days x $ 60 per day = $ 720
Date
Accounts title
Debit
Credit
30-Apr
Accounts receivables
$ 720.00
Rental revenue
$ 720.00
(Rent earned but not received, recorded)
Date
Accounts title
Debit
Credit
30-Apr
Accounts receivables
$ 720.00
Rental revenue
$ 720.00
(Rent earned but not received, recorded)
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