Hernandez Company rents out a portion of its building to Crider Company for $1,000 per month. On

Question:

Hernandez Company rents out a portion of its building to Crider Company for $1,000 per month. On August 1, 2010, Crider Company paid Hernandez Company $12,000 for one years’ rent in advance. Prepare journal entries for Hernandez Company to record the collection of rent and the related year-end adjusting entry.