Question
Selcomm Communications received cash of $12,000 on October 1, 2015 as prepayment for 12 months rent. The accountant recorded the cash receipt as a credit
Selcomm Communications received cash of $12,000 on October 1, 2015 as prepayment for 12 months rent. The accountant recorded the cash receipt as a credit to Rent Revenue and a debit to Cash. What is the year-end adjusting entry on December 31?
options:
| a debit to Rent Revenue and a credit to Unearned Rent, $3,000 |
|
| a debit to Rent Revenue and a credit to Unearned Rent, $9,000 |
|
| a debit to Unearned Rent and a credit to Rent Revenue, $3,000 |
|
| a debit to Cash and a credit to Unearned Rent, $9,000 |
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Auditing and Assurance services an integrated approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
16th edition
978-0134075754, 134075757, 134065824, 978-0134065823
