On March 1,a landlord received $10,000 rent for the month of April.On April 1,the landlord will ________.

Question

Quizplus · Accepted Answer

When the landlord received $10,000 rent for the month of April on March 1st, it is considered as Unearned Rent Revenue because the rent has not yet been earned as it relates to the future (April). On April 1st, the landlord will have to decrease (debit) the Unearned Rent Revenue account for $10,000 because the rent has now been earned for the month of April. At the same time, the landlord will have to increase (credit) the Rent Revenue account for $10,000 to reflect earning the rent for the month of April. Therefore, the correct answer is to decrease Unearned Rent Revenue and increase Rent Revenue (D).

On March 1,a Landlord Received $10,000 Rent for the Month