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If business pays rent in advance and debits a Prepaid Rent account, the company receiving the rent payment will credit * cash. prepaid rent. unearned rent revenue. accrued rent revenue. Which is not an application of revenue recognition? * Receiving cash for services performed. Billing customers on June 30 for services completed during June. Recording revenue as an adjusting entry on the last day of the accounting period. Accepting cash from an established customer for services to be performed over the next three months. Baden 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 Rent was credited for the full $18,000. Financial statements will be prepared on July 31. Baden Realty should make the following adjusting entry on July 31: * Debit Unearned Rent, $3,000; Credit Rental Revenue, $3,000 Debit Rental Revenue, $3,000; Credit Unearned Rent, $3,000. Debit Unearned Rent, $18,000; Credit Rental Revenue, $18,000 Debit Cash, $18,000; Credit Rental Revenue, $18,000. Which one of the following is not a justification for adjusting entries? Adjusting entries are necessary to ensure that revenue recognition principles are followed O Adjusting entries are necessary to ensure that the matching principle is followed Adjusting entries are necessary to enable financial statements to be in conformity with GAAP (generally accepted accounting principles) Adjusting entries are necessary to bring the general ledger accounts in line with the budget