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Fragmental Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,075. Fragmental
Fragmental Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,075. Fragmental collected the entire $8,600 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 Company on December 31 would be: Multiple Choice A debit to Unearned Revenue and a credit to Rent Revenue for $3,225 A debit to Cash and a credit to Rent Revenue for $8,000 A debit to Uneamed Revenue and a credit to Rent Revenue for $5.375 A debit to Rent Revenue and a credit to Cash for $3,225 A debit to Rent Revenue and a credit to Unearned Revenue for $3.225
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