Unearned Rent Revenue

EWO Property Management leases commercial properties. A new client signs a 3-year lease and agrees to pay the first 2 months in advance. The monthly rent is $85,000.

Required:

Prepare the journal entry to record (1) the customers' prepayment of 2 months' rent and (2) the necessary adjusting entry after 1 month has passed.

(1)	Cash
	Unearned Rent Revenue
	(Record cash received for rent paid in advance)
(2)	Unearned Rent Revenue
	Rent Revenue
	(Record revenue)