On June 1, 2014, Herbal Co. received $18,900 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 2014.
Answer:
Unearned Rent 11,025
Rent Revenue 11,025
Rent earned [($18,900 ÷ 12 months) × 7 months].
