Question
Bonita Industries received $17200 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account.
Bonita Industries received $17200 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2020 adjusting entry is
A. debit Unearned Rent Revenue and credit Rent Revenue, $12900.
B. debit Rent Revenue and credit Unearned Rent Revenue, $12900.
C. debit Rent Revenue and credit Unearned Rent Revenue, $4300.
D. debit Unearned Rent Revenue and credit Rent Revenue, $4300.
I know the math is either C or D but I'm not sure whether to debit rent revenue or debit unearned rent revenue.
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Modeling And Designing Accounting Systems Using Access To Build A Database
Authors: Laura R. Ingraham, C. Janie Chang
1st Edition
0471450871, 978-0471450870
