Green Realty Company received a check for $30,000 on July 1 which represents a 6

Question

Green Realty Company received a check for $30,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $30,000. Financial statements will be prepared on July 31. Green Realty should make the following adjusting entry on July 31:

debit Unearned Rent Revenue, $5,000; credit Rent Revenue, $5,000.

debit Rent Revenue, $5,000; credit Unearned Rent Revenue, $5,000.

debit Unearned Rent Revenue, $30,000; credit Rent Revenue, $30,000.

debit Cash, $30,000; credit Rent Revenue, $30,000.

debit Unearned Rent Revenue, $5,000; credit Rent Revenue, $5,000.

debit Rent Revenue, $5,000; credit Unearned Rent Revenue, $5,000.

debit Unearned Rent Revenue, $30,000; credit Rent Revenue, $30,000.

debit Cash, $30,000; credit Rent Revenue, $30,000.

Explanation / Answer

a. Debit Unearned Rent Revenue, $5,000; Credit Rent Revenue, $5.000.

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