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On December 1, Video Center Received $2,400 for Two Years

Question 23

Multiple Choice

On December 1, Video Center received $2,400 for two years' rent in advance from Gaffey Company. The December 31 adjusting entry that Video Center should make is to


A) debit Rental Income; credit Unearned Rent $1,200.
B) debit Cash; credit Rental Income $1,200.
C) debit Unearned Rent; credit Rental Income $100.
D) debit Unearned Rent; credit Rent Expense $100.

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