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Just a review question from a study guide, but I have found out that some of the answers that were given to me were wrong,
Just a review question from a study guide, but I have found out that some of the answers that were given to me were wrong, so I just want to double check to make sure I'm studying the correct information.
Along with the answer, if you could write a brief explanation as well that would be a huge help. Thanks.
17. McCloud Realty Company received a check for $18,000 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Rental Revenue was credited for the full $18,000. Financial statements will be prepared on July 31. McCloud Realty should make the following adjusting entry on July 31 a. Debit Unearned Rental Revenue, $3,000; Credit Rental Revenue, $3,000 b. Debit Rental Revenue, $3,000; Credit Unearned Rental Revenue, $3,000 c. Debit Unearned Rental Revenue, $18,000; Credit Rental Revenue, $18,000 d. Debit Cash, $18,000; Credit Rental Revenue, $18,000Step by Step Solution
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