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On June 1, 2019, an Advance Rent Payment of $8,400

Question 30

Multiple Choice

On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the months of June, July, August, and September, was received in cash from the company's tenant. The journal entry to record the effects of the four months of rent collected in advance on June 1, 2019 is:


A)  Dr.  Cash 8,400 Cr.  Rent Revenue 8,400\begin{array} { | c | l | c | c | } \hline \text { Dr. } & \text { Cash } & 8,400 & \\\hline \text { Cr. } & \text { Rent Revenue } & & 8,400 \\\hline\end{array}
B)  Dr.  Cash 8,400 Cr.  Unearned Rent Revenue 8,400\begin{array} { | c | l | c | c | } \hline \text { Dr. } & \text { Cash } & 8,400 & \\\hline \text { Cr. } & \text { Unearned Rent Revenue } & & 8,400 \\\hline\end{array}
C)  Dr.  Unearned Rent Revenue 6,300 Cr.  Rent Revenue 6,300\begin{array} { | c | l | c | c | } \hline \text { Dr. } & \text { Unearned Rent Revenue } & 6,300 & \\\hline \text { Cr. } & \text { Rent Revenue } & & 6,300 \\\hline\end{array}
D)  Dr.  Unearned Rent Revenue 2,100 Cr.  Rent Revenue 2,100\begin{array} { | c | c | c | c | } \hline \text { Dr. } & \text { Unearned Rent Revenue } & 2,100 & \\\hline \text { Cr. } & \text { Rent Revenue } & & 2,100 \\\hline\end{array}

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