occupancy immediately. The company recorded the cash as Unearned Rent Revenue.

Journal entry worksheet

$1$

$2$

$3$

The Krug Company collected $$10,800$ rent in advance on November $1,$ debiting Cash and crediting Unearned Rent Revenue. The tenant was paying $12$ months' rent in advance and occupancy began November $1.$

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,,Debit,Credit$],[$a$.,$Rent revenue,$7,,],[,$Unearned rent revenue,,,$],[2,,,,],[,,,,$