Contigo Real Estate received a check for $29,600 on August 1 which represents a 5 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $29,600. Financial statements will be prepared on August 31. Which of the following adjusting entries is recorded correctly on August 31?

1 DR: Rent Revenue $5,920; CR: Unearned Revenue $5,920

2 DR: Unearned Revenue $29,600; CR: Rent Revenue $29,600

3 DR: Unearned Revenue $5,920; CR: Rent Revenue $5,920

4 DR: Cash $29,600; CR: Unearned Revenue $29,600