ABC collects rents from several properties.Prior to recording adjusting entries,assume the Rent Income account has a credit balance of $8000.Two adjustments are to be made at the end of the financial year 1)an accrual for accrued rent income of $600 2)the Unearned Rent Income account is to be decreased by $200.After processing these adjusting entries the amount of Rent Income to be shown in the income statement is:

Question

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The initial Rent Income is $8000. Adding the accrued rent income of $600 increases it to $8600. Decreasing the Unearned Rent Income by $200 further increases it to $8800.

ABC Collects Rents from Several Properties