REM Real Estate received a check for $27,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client.
Question
REM Real Estate received a check for $27,000 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 $27,000. Financial statements will be prepared on July 31. REM Real Estate should make the following adjusting entry on July 31: – Q/A (Question and Answer)
Test Answer
Answer:
Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500
Recource Accounting 211 Ch. 3
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