received 19400 on April 1 2017 for one years rent in advance

received $19400 on April 1, 2017 for one year\'s rent in advance and recorded the transaction with a credit to a account. The December 31, 2017 adjusting entry is debit Rent Revenue and credit Unearned Rent Revenue, $14550 Rent Revenue and credit Rent Revenue, $14550 Question Attempts: O of 1 used SAVE FOR LATER

Solution

Answer:he receipt of

Option 4 i.e. Debit Rent Revenue and Credit Unearned Rent Revenue $4,850.

The adjusting entry on December 31 will be record by Debiting theRent Revenue, as on April 1 the receipt of Rent Revenue was entered by credited the Nominal Account i.e. Rent Revenue. And,Unearned Rent Revenue will be credited as the liability has incurred due to Unearned Rent Revenue.