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If it has been prepaid by a customer and you show the cash related to this prepayment on your books, it is straight liability. You can think of this as something that you have but does not belong to you until you earn it. It is not deferred liability.
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An example of deferred revenue is Unearned Rent?
true
An example of deferred revenue is unearned rent True or false?
true
What is unearned rent?
It is the rent which u have received in advance. . . . It is a liability for you. . . .got it. . . . . . !
What type of account is unearned rent?
Liability account.
Is unearned rent a liability with a credit balance?
Yes unearned rent is that amount which is already received but which is not due to be received yet that's why it is shown in liability section of balance sheet and it has credit balance.
An example of deferred revenue is Unearned Rent?
true
An example of deferred revenue is unearned rent True or false?
true
What is unearned rent?
It is the rent which u have received in advance. . . . It is a liability for you. . . .got it. . . . . . !
What type of account is unearned rent?
Liability account.
Is unearned rent a liability with a credit balance?
Yes unearned rent is that amount which is already received but which is not due to be received yet that's why it is shown in liability section of balance sheet and it has credit balance.
What is the type of account and normal balance of unearned rent?
liability, credit
Why unearned rent is liability?
Because if the tenant vacates the premisses you are required to return unearned rent. There are complications to that, say if they damaged the rental unit and part of the rent was as a security deposit... but if you're referring to actual prepaid rent... then you are required to return any unearned rent.
Where would unearned rent appear on the balance sheet?
As it is still unearned which means we have not yet provide the benefit of which we have received the rent that's why it's the liability of company and it would be shown at liability side of balance sheet.
How do you adjust straight line amortization of deferred rent when lease is extended?
I am not entirely positive. But I believe you would take the balance of the deferred rent liability at relating to the lease prior to expansion and amortize it over the remaining life of the new lease. If deferred rent liability was 10k as of 10/31/2011 and you extended the lease term for two years ending 12/31/2013 you would calculate the new straightline expense of the lease at time of the extension through the end of the lease term and determine the deffered rent liability as of 12/31/2011. Then add 10K/24 = 417X 2 = 834 to the 12/31/2011 deferred rent balance of the new lease You are debiting the deferred rent liability and crediting expense to decrease the deferred rent liability associated with the old lease.
The type of account and normal balance of Unearned Rent is?
The normal balance of Unearned Rent is typically a liability credit entry. The balance will show up in the post-closing trial of the balance sheet.
Where would unearned rent appear on the landlord's balance sheet?
In the current liability section of the balance sheet.
Is deferred revenue an asset?
Deferred revenue is recognized when cash received in advance for product or service that not delivered or rendered, so it's liability, once service fulfilled or product received Revenue Would be recognized Deferred revenue also Known as unearned revenue
