Brown Management Received a Check for $24,000 on July 1

question 19

Multiple Choice

Brown Management received a check for $24,000 on July 1, which represents a 12-month advance payment of rent on a restaurant it rents to a client.Unearned Rent was credited for the full $24,000.Financial statements will be prepared on July 31.Brown Management should make the following adjusting entry on July 31:

• A)Debit Unearned Rent, $2,000; Credit Rent Revenue, $2,000.
• B)Debit Rent Revenue, $2,000; Credit Unearned Rent, $2,000.
• C)Debit Unearned Rent, $12,000; Credit Rent Revenue, $12,000.
• D)Debit Cash, $12,000; Credit Rent Revenue, $12,000.

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