Question
On September 1 of Year 1, the company received $3,600 cash for rent in advance. This $3,600 rental receipt covers the period from September 1
On September 1 of Year 1, the company received $3,600 cash for rent in advance. This $3,600 rental receipt covers the period from September 1 of Year 1 to August 31 of Year 2. On September 1, the receipt of the cash was recorded as a liability, Unearned Rent. Which ONE of the following would be included in the ADJUSTING journal entry necessary on December 31 with respect to this rent received in advance?
Group of answer choices
CREDIT to Rent Revenue for $3,600
DEBIT to Rent Revenue for $3,600
DEBIT to Rent Revenue for $2,400
DEBIT to Rent Revenue for $1,200
CREDIT to Rent Revenue for $1,200
CREDIT to Rent Revenue for $2,400
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