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Prism Company is renting out some of its office space to Jinx Company for a six month lease term. On November 1, the beginning of
Prism Company is renting out some of its office space to Jinx Company for a six month lease term. On November 1, the beginning of the lease, Prism collects $15,000 in cash in advance from Jinx, which covers the entire lease term. Assuming Prism correctly recorded this cash-in-advance transaction at the beginning of the lease under accrual accounting, but has not made an entries since then, what would it record as an ADJUSTING ENTRY when it closes its books on December 31? Unearned Rent Revenue 5,000 Rent Revenue 5,000 Rent Revenue 5,000 Unearned Rent Revenue 5,000 2,500 Unearned Rent Revenue Rent Revenue 2,500 Rent Revenue 15,000 Unearned Rent Revenue 15,000
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