On September 1, 2017, Black Corporation received $36,000 cash from a tenant for one year’s rent in advance, and recorded the transaction with a credit to Rent Revenue. The December 31, 2017 required adjusting entry in connection with this would be
A. debit Rent Revenue and credit Unearned Rent, $12,000.
B. debit Rent Revenue and credit Unearned Rent, $24,000.
C. debit Unearned Rent and credit Rent Revenue, $12,000.
D. debit Cash and credit Unearned Rent, $6,000.
Answer:B
On September 1, 2017, Black Corporation received $36,000 cash from a tenant for one year’s rent in advance, and recorded the transaction with a credit to Rent Revenue. The December 31, 2017 required adjusting entry in connection with this would be
A. debit Rent Revenue and credit Unearned Rent, $12,000. B. debit Rent Revenue and credit Unearned Rent, $24,000. C. debit Unearned Rent and credit Rent Revenue, $12,000. D. debit Cash and credit Unearned Rent, $6,000.