The Following Unadjusted Amount Was Reported on Rental Entertainment Corporation's $\quad$

question 146

Essay

The following unadjusted amount was reported on Rental Entertainment Corporation's accounting records at December 31,2017:
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Unearned Subscription Revenue $\quad$ $\quad$ $\quad$$\$ 36,000$ ?
A. Determine the effect on the accounting equation of any adjusting entries necessary at December 31,2017 , for each of the following transactions:

1. During the year, Rental Entertainment sold 12 -month subscriptions for its newly devel oped Internet service. Half of the subscriptions began October 1,2017, while the other half began December 1, 2017.

2. Rental estimates its income taxes to be $30 \%$ of its estimated income of $\$ 60,000$ . ?
B. Frepare the Current Liabilities section of Rental's balance sheet by listing any current liabilities and the related amounts as a result of the adjustments in part $\mathrm { A }$ .

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Definitions:

Domestic Quantity

The total amount of a good or service produced within a country's borders, available for consumption or export.

Supplied

Refers to the total amount of a good or service that is available to consumers in a market at a given price level.

CD-Rom Drives

Hardware devices used to read and sometimes write data to CD-ROM discs, prevalent in computing before cloud storage and USB.

Imports

Goods or services brought into one country from another for the purpose of sale or use.