On November 1, 2016, Gordon Co. collected $75,600 in cash from
its tenant as an advance rent payment on its store location. The
six-month lease period ends on April 30, 2017, at which time the
contract may be renewed.

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Question: On November 1, 2016, Gordon Co. collected $75,600 in cash from its tenant as an advance rent paym…
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a-1. Use the horizontal model to record the
effect of the six months of rent collected in advance on November
1, 2016 for Gordon Co. (Use amounts with + for increases
and amounts with – for decreases.) Fill in all yellow
boxes

Question: On November 1, 2016, Gordon Co. collected $75,600 in cash fromits tenant as an advance rent paym...

Question: On November 1, 2016, Gordon Co. collected $75,600 in cash fromits tenant as an advance rent paym...

a-2. Use the horizontal model to record the
effect of the adjustment that will be made at the end of each month
to show the amount of rent “earned” during the month for Gordon Co.
(Use amounts with + for increases and amounts with – for
decreases.) Use same style chart above and fill in yellow
boxes.

b. Calculate the amount of unearned rent that
should be shown on the December 31, 2016, balance sheet with
respect to this lease.

c. If a larger advance collection was received
on November 1, 2016, that had covered a longer 18-month lease
period (at the same amount of rent per month), how should Gordon
Co. report the unearned rent amount on its December 31, 2016,
balance sheet?

Question: On November 1, 2016, Gordon Co. collected $75,600 in cash fromits tenant as an advance rent paym...

Show transcribed image text Assets Balance Sheet Liabilities Stockholders' Equity Net Income

Assets Balance Sheet Liabilities Stockholders' Equity Net Income

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