On April 1 $3,600 was received in advance for 12 months of rent. On April 30, $300 out of the total rent has been earned. Required: With regard to the above situation: a. State whether it is a prepaid expense, unearned revenue, accrued revenue or an accrued expense. b. Assuming that the accounting period is 1 month, prepare the necessary adjusting entry on April 30. Answer a. This situation is a Prepaid expense Unearned Revenue Accrued Expense Accrued Revenue b. The necessary adjusting entry is the following: DATE ACCOUNT TITLES DEBIT CREDIT April 30 Rent Revenue Cash Unearned Rent Revenue Prepaid Rent