Question
On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the months of June, July, August, and September, was received
On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the months of June, July, August, and September, was received in cash from the companys tenant.
The journal entry to record the effects of the four months of rent collected in advance on June 1, 2019 is:
a. Dr.Cash 8,400 /Cr.Rent Revenue 8,400
b. Dr.Cash 8,400/ Cr.Unearned Rent Revenue 8,400
c. Dr.Unearned Rent Revenue 6,300/ Cr.Rent Revenue 6,300
d. Dr.Unearned Rent Revenue 2,100 /Cr.Rent Revenue 2,100
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Financial Accounting Tools For Business Decision Making
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt
8th Edition
1119316022, 978-1119316022
