A real estate business received a cheque for $27,000 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 October 31.

Select one:

a.

debit Rent Revenue, $4,500; credit Unearned Rent Revenue, $4,500

b.

debit Unearned Rent Revenue, $18,000; credit Rent Revenue, $18,000

c.

debit Unearned Rent Revenue, $27,000; credit Rent Revenue, $27,000

d.

debit Rent Revenue, $18,000; credit Unearned Rent Revenue, $18,000

e.

debit Unearned Rent Revenue, $4,500; credit Rent Revenue, $4,500