Why credit to deferred rental income


Response to the following problem:

A private enterprise began operating a gift shop in Hope Hospital on May 1, 20X1. At that time, the hospital received a year's rent ($3,000) in advance. The $3,000 was credited to deferred rental income.

Assuming that the hospital prepares monthly statements, make the necessary adjusting entry at September 30, 20X1.

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Financial Accounting: Why credit to deferred rental income
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