On November 1, 2013, Gordon Co. collected $37,800 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2014, at which time the contract may be renewed.
1. Use the horizontal model to record the effect of the six months of rent collected in advance on November 1, 2013 for Gordon Co. (Enter decreases to account balances with a minus sign.)
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. (Enter decreases to account balances with a minus sign.)
The question belongs to Accounting and it discusses about using horizontal model to record effect of six months of rent collected in advance for a company.
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