In: Accounting
Selcomm Communications received cash of $12,000 on October 1, 2015 as prepayment for 12 months’ rent. The accountant recorded the cash receipt as a credit to Rent Revenue and a debit to Cash. What is the year-end adjusting entry on December 31?
options:
a debit to Rent Revenue and a credit to Unearned Rent, $3,000 |
a debit to Rent Revenue and a credit to Unearned Rent, $9,000 |
a debit to Unearned Rent and a credit to Rent Revenue, $3,000 |
a debit to Cash and a credit to Unearned Rent, $9,000 |
Answer
Account Titles and Explanation |
Debit |
Credit |
Rent Revenue |
$9000 |
|
Unearned Rent |
$9000 |