On February 1, Watson Storage agreed to rent Hillbourne Manufacturing warehouse space for $300 per month. Hillbourne

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On February 1, Watson Storage agreed to rent Hillbourne Manufacturing warehouse space for $300 per month. Hillbourne Manufacturing paid the first three months' rent in advance.
a. Prepare the necessary adjusting entry for Hillbourne Manufacturing on February 28, assuming it recorded the expenditure on February 1 as Prepaid Rent.
b. Prepare the necessary adjusting entry for Watson Storage on February 28, assuming it recorded Hillbourne Manufacturing's payment as Unearned Rent Revenue.
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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078025778

17th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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