Exercise $3-6$ Preparing adjusting entries $($annual$)-$unearned revenue LO$4$

Splish Splash Art is a centre that offers children's music and dance lessons. Splish Splash prepares annual financial statements and has a December $31,2023,$ year$-$end.

a$.$ On September $1,$ Splish Spash Art collects $$17,100$ cash for dance lessons running from September $1,2023$ to December $31,2023.$

b$.$ On October $1,$ Splish Splash Art collects $$7,000$ cash in advance from the Music Box Inc. $($ $$3,500$ per month$)$ to rent its performance stage for the full month of December $2023$ and January $2024.$

c$.$ On October $1,2023,$ Splish Splash Art collects $$11,000$ cash for four months of music lessons for a local private school. The lessons run from October $1,2023$ to January $31,2024.$

Required:

For the above transactions, record the initial journal entry and the adjusting entry required on December $31,2023.$

a$.$

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$\backslash$table$[[,$No$,$Date,General Journal,Debit,Credit$],[i,1,$Sep $01,2023,$Cash,$17,100,],[,,$Unearned revenue,,$17,100],[,2,$Dec $31,2023,$Unearned revenue,$4,275,],[,,$Cash,,$4,275]]$

Mc

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