On July 1 2014 the Indigo Ltd Rented Out Part

question 61

Multiple Choice

On July 1 2014 the Indigo Ltd rented out part of its property and collected $9000 in advance for a nine-month period. The receipt was credited to a liability account. At 31 December 2014, Indigo Ltd's year-end, which of the following adjusting journal entries should be made?

• A) DR Cash $6000; CR Rent income $6000
• B) DR Rent income $3000; CR Unearned rent income $3000
• C) DR Unearned rent income $6000; CR Rent income $6000
• D) DR Rent receivable $6000; CR Rent income $6 000

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