Unearned Rent Revenue Mannion Property Management leases commercial properties and expects its clients to pay rent on a monthly basis. A new client signs a four-year lease with a yearly rent of \(\$ 420,000\) and agrees to pay the first six months in advance.
Required:
Make the journal entry to record the following transactions.
1. The customer's prepayment of six months' rent 2. The necessary adjusting entry after one month has passed \section*{Brief Exercise