Answered

fragmental company leased a portion of its store to another company for eight months beginning on october 1, at a monthly rate of $900. fragmental collected the entire $7,200 cash on october 1 and recorded it as unearned revenue. assuming adjusting entries are only made at year-end, the adjusting entry made by fragmental company on december 31 would be:



Answer :

Debit to Undistributed Rent Credit to Earned Rent for $2,700, according to the stated intities.

A fragmented company is what?

An industry that is fragmented has several competing companies, rather than a single or limited group of firms that control it. Due to the industry's framework of competition, no one corporation has an especially dominant or important position.

Briefing :

Amount of total rent = $7,200

Computation:

Undistributed ammount = Amount of total rent (3months / 8 months)

Amount unearned = 7,200 [3/8]

Amount unearned = $2,700

Journal entry:

Unearned rent A/c Dr $2,700

Rent A/c Cr $2,700

[Debit to Unearned Rent

Credit to Rent Earned for $2,700]

To know more about fragmental company visit :

https://brainly.com/question/28024737

#SPJ4

Other Questions