Mercury Company rents out a portion of its office space to another company.At the beginning of the year,the balance in the Unearned Rent Revenue account was $3,400.During the year,Mercury recognized $16,600 of rent revenue.If the ending balance of Unearned Rent Revenue is $2,600,how much cash was received from the tenant for rent during the year?
A)$14,000
B)$16,600
C)$17,400
D)$15,800

Question

Quizplus · Accepted Answer

Ending balance of unearned revenue of $2,600 = Beginning balance of unearned revenue of $3,400 + Increase due to cash collected in advance (the unknown)- Decrease due to rent revenue earned of $16,600
Cash collected in advance = $2,600 - $3,400 + $16,600 = $15,800

Mercury Company Rents Out a Portion of Its Office Space