Your calendar year company rents a machine to another firm


On September 1, your calendar year company rents a machine to another firm for $24,000 a year. As of December 31, $15,000 has been received and recorded in Unearned Rent Revenue. If your company uses the accrual basis, what adjusting entry do you record at year end?

debit Unearned Rent Revenue for $7,000; credit Rent Revenue for $7,000

debit Rent Revenue for $7,000; credit Unearned Rent Revenue for $7,000

debit Rent Revenue for $8,000; credit Unearned Rent Revenue for $8,000

debit Unearned Rent Revenue for $8,000; credit Rent Revenue for $8,000

debit Rent Revenue for $9,000; credit Unearned Rent Revenue for $9,000

debit Unearned Rent Revenue for $9,000; credit Rent Revenue for $9,000

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Business Management: Your calendar year company rents a machine to another firm
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