Crane Real Estate received a check for $27540 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 $27540. Financial statements will be prepared on July 31. Crane Real Estate should make the following adjusting entry on July 31: O Debit Unearned Rent Revenue, $27540; Credit Rent Revenue, $24480. O Debit Rent Revenue, $4590; Credit Unearned Rent Revenue, $4590. O Debit Cash, $27540; Credit Rent Revenue, $27540. O Debit Unearned Rent Revenue, $4590; Credit Rent Revenue, $4590.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 8
Crane Real Estate received a check for $27540 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 $27540. Financial statements will be prepared on July 31. Crane Real Estate should make the following adjusting entry on July 31:
O Debit Unearned Rent Revenue, $27540; Credit Rent Revenue, $24480.
O Debit Rent Revenue, $4590; Credit Unearned Rent Revenue, $4590.
O Debit Cash, $27540; Credit Rent Revenue, $27540.
O Debit Unearned Rent Revenue, $4590; Credit Rent Revenue, $4590.
MILLI
Transcribed Image Text:Question 8 Crane Real Estate received a check for $27540 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 $27540. Financial statements will be prepared on July 31. Crane Real Estate should make the following adjusting entry on July 31: O Debit Unearned Rent Revenue, $27540; Credit Rent Revenue, $24480. O Debit Rent Revenue, $4590; Credit Unearned Rent Revenue, $4590. O Debit Cash, $27540; Credit Rent Revenue, $27540. O Debit Unearned Rent Revenue, $4590; Credit Rent Revenue, $4590. MILLI
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