REM Real Estate received a check for $27,000 on July 1 which represented a six-month advance payment on a building it rents to a client.Unearned Rent Revenue was credited for the full $27,000.Financial statements will be prepared on July 31.REM Real Estate should make the following adjusting entry on July 31:
A) Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500.
B) Debit Rent Revenue, $4,500; Credit Unearned Rent Revenue, $4,500.
C) Debit Unearned Rent Revenue, $27,000; Credit Rent Revenue, $24,000.
D) Debit Cash, $27,000; Credit Rent Revenue, $27,000.
Correct Answer:
Verified
Q180: A liability-revenue account relationship exists with an
Q181: The time period assumption states that the
Q182: Adjustments would not be necessary if financial
Q183: Expenses sometimes make their contribution to revenue
Q184: Expenses incurred but not yet paid or
Q186: If a business receives cash in advance
Q187: Soundgarden Company collected $18,200 in May of
Q188: Yo La Corporation issued a one-year, 6%,
Q189: Relevant accounting information
A)is information that has been
Q190: An expense is recorded under the cash
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents