Joe Received $4,000 in Advance for Renting Part of His

question 112

Multiple Choice

Joe received $4,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

• A) Debit Cash $1,000; credit Rental Income $1,000
• B) Debit Cash $4,000; credit Rental Income $4,000
• C) Debit Unearned Rent $1,000, credit Rental Income $1,000
• D) Debit Unearned Rent $4,000, credit Rental Income $4,000

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