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In: Accounting

Fragmental Co. leased a portion of its store to another companyfor eight months beginning on...

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,025. Fragmental collected the entire $8,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:

A.) A debit to Unearned Rent and a credit to Rent Revenue for $5,125.

B.) A debit to Rent Revenue and a credit to Cash for $3,075.

C) A debit to Cash and a credit to Rent Revenue for $8,200.

D.) A debit to Rent Revenue and a credit to Unearned Rent for $3,075.

E.) A debit to Unearned Rent and a credit to Rent Revenue for $3,075.

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ekkarill92 answered 2 years ago
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