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Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $875. Fragmental
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $875. Fragmental collected the entire $7,000 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Unearned Rent and a credit to Rent Revenue for $4,375 A debit to Cash and a credit to Rent Revenue for $7,000. A debit to Rent Revenue and a credit to Cash for $2,625. O A debit to Unearned Rent and a credit to Rent Revenue for $2,625 A debit to Rent Revenue and a credit to Unearned Rent for $2.625
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