Outline the process illustrated in the following figure.
Definitions:
Rent Revenue
Income received from leasing out property or equipment to another party for a specified term.
Adjusting Entry
An accounting entry made into the books of accounts at the end of an accounting period to record any unrecognized income or expenses for that period.
Unearned Rent
Income received in advance for rental periods that have not yet occurred, recognized as a liability until the service period is completed.
Adjusting Entry
A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.
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