34. Unearned rent:         Balance beginning of the year               P11,000         Balance end of year                               15,000 Warehouse quarterly rent received in advance is P18,000.  During the year, equipment was rented to another company at an annual rent of P9,000.  The quarterly rent payments were credited to Rent Income; the annual equipment rental was credited to Unearned Rent. What is the appropriate adjusting entry?     a. Debit Rent Income and credit Unearned Rent, P4,000 b. Debit Unearned Rent and credit Rent Income P4,000 c. Debit Rent Income and credit Unearned Rent, P5,000 d. Debit Unearned Rent and credit Rent Income P5,000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 3.21E: Adjustments for unearned and accrued fees The balance in the unearned fees account, before...
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34. Unearned rent:

        Balance beginning of the year               P11,000

        Balance end of year                               15,000

Warehouse quarterly rent received in advance is P18,000.  During the year, equipment was rented to another company at an annual rent of P9,000.  The quarterly rent payments were credited to Rent Income; the annual equipment rental was credited to Unearned Rent. What is the appropriate adjusting entry?
 
 
a. Debit Rent Income and credit Unearned Rent, P4,000
b. Debit Unearned Rent and credit Rent Income P4,000
c. Debit Rent Income and credit Unearned Rent, P5,000
d. Debit Unearned Rent and credit Rent Income P5,000
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