Leyland Realty Company Received a Check for $18,000 on July

Multiple Choice

Leyland Realty Company received a check for $18,000 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 $18,000.Financial statements will be prepared on July 31.Leyland Realty should make the following adjusting entry on July 31:

A) debit Unearned Rent Revenue, $3,000; credit Rent Revenue, $3,000.
B) debit Rent Revenue, $3,000; credit Unearned Rent Revenue, $3,000.
C) debit Unearned Rent Revenue, $18,000; credit Rent Revenue, $18,000.
D) debit Cash, $18,000; credit Rent Revenue, $18,000.