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On February 1, 2015, Apollo Company Received $24,000 in Advance

Question 42

Multiple Choice

On February 1, 2015, Apollo Company received $24,000 in advance for a three-year rental of land, and credited Rent Revenue for the entire amount. The correct December 31, 2015 adjusting entry would be


A) Unearned Rent 16,667 Rent Revenue 16,667
B) Rent Revenue 16,667 Unearned Rent 16,667
C) Unearned Rent 7,333 Rent Revenue 7,333
D) Rent Revenue 7,333 Unearned Rent 7,333

Correct Answer:

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