RENTAL INCOME

[oztheguitarman]

21st August 2008


In 2007 a real estate agent was taking care on behalf of the church to rent out one of the properties from 1st Dec 06 to 30th Nov 07.

The agent did not pay the final November 2007 rent namely $ 1750.00
and the books for 2007 are now closed.

However, on 16th January 2008 the real estate agent made a direct deposit to the church's account for total $ 2316.34.

I have done a reconcilliation of total rent, deposits etc and have arrived at the following figures:

a) TOTAL RENT ($ 1750.00 PER MONTH) + INITIAL DEPOSIT ( $ 875.00)
from December 2006 to November 2007 amounts to $ 21875.00

b) TOTAL AMOUNT paid by the real estate agent (including the direct deposit amount of $ 2316.34 paid on 16th Jan 08) amounts to $ 17996.34

c) TOTAL EXPENSES TO MAINTAIN THE RENTAL PROPERTY PAID BY THE REAL ESTATE AGENT AMOUNTS TO $ 4079.41

Therefore the Net Amount the church should receive from the Real Estate Agent should be $ 17795.59 (i.e. $ 21875.00 less $ 4079.41) whereas total payments received from the agent is $ 17996.34.

There is a difference of $ 200.75 excess payment which I am unable to reconcile.

Since the books for 2007 have been closed, I would like to know what journal entry I should pass for the month of January 2008 for total payment deposit of $ 2316.34 in order to reconcile the books for January 2008.

Please advise if I should create a new account or how to handle this transaction.

Thanks and regards

Osvaldo