Rem real estate received a check for $27,000 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 $27,000. financial statements will be prepared on july 31. rem real
estate should make the following adjusting entry on july 31:

a. debit unearned rent revenue, $4,500; credit rent revenue, $4,500.
b. debit rent revenue, $4,500; credit unearned rent revenue, $4,500.
c. debit unearned rent revenue, $27,000; credit rent revenue, $24,000.
d. debit cash, $27,000; credit rent revenue, $27,000.

a. Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500

Explanation:

When the company receives the $27,000 check for six months of advance rent, it records the unearned revenue in a liability account named Unearned Rent Revenue. The resulting journal entry is:

(Dr) Cash, $27,000

(Cr) Unearned Rent Revenue, $27,000

With the passing of each month, the company earns one-sixth (1/6) of the unearned rent revenue (or $4,500), essentially reclassifying the revenue from unearned to earned. Therefore, after one month, the resulting journal entry is:

(Dr) Unearned Rent Revenue, $4,500

(Cr) Rent Revenue, $4,500

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muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.