Green Realty Company Received a Check for $24,000 on July

Multiple Choice

Green Realty Company received a check for $24,000 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 $24,000.Financial statements will be prepared on July 31.Green Realty should make the following adjusting entry on July 31:

A) debit Unearned Rent Revenue, $4,000; credit Rent Revenue, $4,000.
B) debit Rent Revenue, $4,000; credit Unearned Rent Revenue, $4,000.
C) debit Unearned Rent Revenue, $24,000; credit Rent Revenue, $24,000.
D) debit Cash, $24,000; credit Rent Revenue, $24,000.