How should gordon co report the unearned rent amount

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Reference no: EM133157152

Question - On November 1, 2019, Gordon Co. collected $31,800 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2020, at which time the contract may be renewed.

If a larger advance collection was received on November 1, 2019, that had covered a longer 18-month lease period (at the same amount of rent per month), how should Gordon Co. report the unearned rent amount on its December 31, 2019, balance sheet?

Reference no: EM133157152

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