On November 1, 2016, Gordon Co. collected $6,060 in cash from its tenant as an...
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Accounting
On November 1, 2016, Gordon Co. collected $6,060 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.
b. Calculate the amount of unearned rent that should be shown on the December 31, 2016, balance sheet with respect to this lease.
c. Suppose the advance collection received on November 1, 2016, covered an 24-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?
Current liability
Noncurrent liability
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