1. Disco received $2,400 from a tenant on December 1 for three months rent of an office. This rent was for December, January, and February. If Disco increased Cash and increased Unearned Rental Income for $2,400 on December 1, what necessary adjustment would be made on December 31?

	BALANCE SHEET						INCOME STATEMENT
	ASSETS	=	LIABILITIES	+	STOCKHOLDER'S EQUITY		REVENUE	EXPENSE
			(Unearned Rental Income)				(Rental Income)
A)			-800		+800		+800
B)			+800		-800		-800
C)			-1,600		+1,600		+1,600
D)			+1,600		-1,600		-1,600