The Duke 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 $1,200.During the year,Duke recognized $6,800 of rent revenue.If the ending balance of unearned rent revenue is $700,how much cash was received from the tenant for rent during the year?
A) $7,300
B) $6,800
C) $6,300
D) $7,500

Question

Quizplus · Accepted Answer

The cash received from the tenant can be found by taking the total rent recognized (which includes both cash received and unearned rent earned) and subtracting the change in the unearned rent revenue account balance. 
Total rent recognized = $6,800 
Change in unearned rent revenue account balance = $1,200 - $700 = $500 
Cash received from tenant = $6,800 - $500 = $6,300, which corresponds to choice C.

The Duke Company Rents Out a Portion of Its Office