Question 10 Action Real Estate received a check for $24,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $24,000. Financial statements will be prepared on July 31. Action Real Estate should make the following adjusting entry on July 31: O Debit Unearned Rent Revenue, $4,000; Credit Rent Revenue, $4,000. O Debit Rent Revenue, $4,000; Credit Unearned Rent Revenue, $4,000. O Debit Unearned Rent Revenue, $24,000; Credit Rent Revenue, $24,000. O Debit Cash, $24,000; Credit Rent Revenue, $24,000.

Question 10 Action Real Estate received a check for $24,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $24,000. Financial statements will be prepared on July 31. Action Real Estate should make the following adjusting entry on July 31: O Debit Unearned Rent Revenue, $4,000; Credit Rent Revenue, $4,000. O Debit Rent Revenue, $4,000; Credit Unearned Rent Revenue, $4,000. O Debit Unearned Rent Revenue, $24,000; Credit Rent Revenue, $24,000. O Debit Cash, $24,000; Credit Rent Revenue, $24,000.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.6E: Prepaid Rentâ€”Quarterly Adjustments On September 1, Northhampton Industries signed a six-month...

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