00:01
A company collected $6 ,000 worth of rent in advance on november 1st, debuting crotch and crediting unearned rent revenue.
00:09
The tenant was paying one year's rent in advance, and occupancy began november 1st.
00:16
In this example, we're going to be doing some adjusting entries.
00:20
We would need to adjust for one month earned.
00:24
If this $6 ,000 was for one year, then one month would account for $500.
00:32
And i need to adjust.
00:37
To adjust, i would debit unearned rent revenue for 500, and i would credit rent revenue for 500 to show that one month has been earned.
00:50
A company charges $75 per month to spray a house for insects.
00:55
A customer paid $300 on october 1st in advance for the treatments, which was recorded with a debit to cash and a credit to uninsks.
01:04
Unearned service revenue.
01:07
At your end, the company has applied three treatments for the customer...