Leyland Realty Company Received a Check for $15,000 on July

Multiple Choice

Leyland Realty Company received a check for $15,000 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 $15,000. Financial statements will be prepared on July 31. Leyland Realty should make the following adjusting entry on July 31:

A) debit Unearned Rent Revenue, $2,500; credit Rent Revenue, $2,500.
B) debit Rent Revenue, $2,500; credit Unearned Rent Revenue, $2,500.
C) debit Unearned Rent Revenue, $15,000; credit Rent Revenue, $15,000.
D) debit Cash, $15,000; credit Rent Revenue, $15,000.