Phillips Inc. owns a building. On April 1st Phillips Inc. signs a rent contract with Edison Inc.: th

/in /by

Phillips Inc. owns a building. On April 1st Phillips Inc. signs a rent contract with Edison Inc.: the rent to be paid by Edison is $12,000 per year. The rent is paid every six months, at the end of the six-month period, in installments of equal amounts. The first installment is paid on October 1st . On December 31st, end of the fiscal year, Phillips will record the following adjusting entry