A real estate business received a cheque for $21,000 from a tenant on July 1, a 6-month advance payment of rent on a building. The real estate business would make the following year-end adjusting entry on Aug 31.

Select one:

a.

debit Unearned Rent Revenue, $7,000; credit Rent Revenue, $7,000

b.

debit Rent Revenue, $3,500; credit Unearned Rent Revenue, $3,500

c.

debit Unearned Rent Revenue, $3,500; credit Rent Revenue, $3,500

d.

debit Unearned Rent Revenue, $21,000; credit Rent Revenue, $21,000

e.

debit Rent Revenue, $7,000; credit Unearned Rent Revenue, $7,000