TCO B) Adjusting Entries: Unearned rent at 1/1/1X was $5,000 and at 12/31/1X was $8,000. The records indicate cash receipts from rental sources during 201X amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit. Solution Missing Adjusting Entry: Opening Balance in Unearned Rent Account = $5,000 + Rent Credited to Unearned Rent Account = $40,000 - Closing Balance in Unearned Rent Account = $8,000 Amount Transferred to Rent Income A/c = $37,000 .

1. TCO B) Adjusting Entries: Unearned rent at 1/1/1X was $5,000 and at 12/31/1X was $8,000.
The records indicate cash receipts from rental sources during 201X amounted to $40,000, all of
which was credited to the Unearned Rent Account. You are to prepare the missing adjusting
entry. For each journal entry write Dr. for debit and Cr. for credit.
Solution
Missing Adjusting Entry:
Opening Balance in Unearned Rent Account = $5,000
+ Rent Credited to Unearned Rent Account = $40,000
- Closing Balance in Unearned Rent Account = $8,000
Amount Transferred to Rent Income A/c = $37,000
Date Account Title Debit($) Credit($)
xxx Unearned Rent Account 37,000
Rent Income A/c 37,000
(Recording of Transfer Unearned rent to Rent Income A/c)