Unearned Rent Revenue $451,590. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.
Date Term (in months) Monthly rent # of leases
Nov 1 6 $6,000 5
Dec 1 6 $8,500 4
Prepaid advertising $13,200. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below.
Contract Date Amount # of magazine issues
A650 May 1 $6,000 12
B974 Oct 1 $7,200 24
Notes payable $60,000. This balance consists of a note for one year at an annual interest rate of 12% dated June 1.
Required:
Journalize the entries.