A company's accounting records included the following accounts. Accounts Receivable (A) Prepaid Rent (A) Unearned Revenue (L)
Required:
1. Complete the following sentencse that describes typical effects transactions have on the following accounts.
Accounts Transactions Increase and Decrease
Accounts Receivable Sales to customers on account.
Accounts Receivable Cash collections from customers.
Prepaid Rent Cash payments for rent related to future periods.
Prepaid Rent The benefits of these prepayments are used up over time.
Unearned Revenue Cash received from customers for goods or services to be provided inthe future.
Unearned Revenue Goods and services are provided.
2. Compute the missing amounts
Beginning Increase Decrease = Ending
Accounts Receivable 324 2,725 = 476
Prepaid Rent 54 57 = 56
Unearned Revenue 366 342 =
316