Rent of $150 collected in advance was credited to rent revenue. At the end of the accounting period, it was still unearned. The related adjusting entry should be: Debit-- Rent revenue, $150; Credit--Unearned rent revenue, $150.

Question

Quizplus · Accepted Answer

The adjusting entry correctly moves the $150 from earned revenue (where it was incorrectly recognized upon initial receipt) to a liability account (unearned rent revenue), reflecting that the service has not yet been provided.

Rent of $150 Collected in Advance Was Credited to Rent