An entity received cash of P24,000 on August 1 for one-year's rent in advance and recorded the transaction on that day as a credit to unearned rent revenue for the full amount. The December 31 adjusting entry is: a. Rent revenue 10,000

An entity received cash of P24,000 on August 1 for one-year's rent in advance and recorded the transaction on that day as a credit to unearned rent revenue for the full amount. The December 31 adjusting entry is: a. Rent revenue 10,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 5BE: Adjustment for unearned revenue On June 1, 20Y2, Herbal Co. received 18,900 for the rent of land for...

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Question

Solve and explain why it is the answer.

14. An entity received cash of P24,000 on August 1 for one-year's
rent in advance and recorded the transaction on that day as a
credit to unearned rent revenue for the full amount. The
December 31 adjusting entry is:
a. Rent revenue
10,000
Unearned rent revenue
10,000
b. Unearned rent revenue
24,000
Rent revenue
24,000
C. Rent revenue
14,000
Unearned rent revenue
14,000
d. Unearned rent revenue
10,000
Rent revenue
10,000

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