Green Realty Company Received a Check for $30,000 on July

Multiple Choice

Green Realty Company received a check for $30,000 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 $30,000. Financial statements will be prepared on July 31. Green Realty should make the following adjusting entry on July 31:

A) debit Unearned Rent Revenue, $5,000; credit Rent Revenue, $5,000.
B) debit Rent Revenue, $5,000; credit Unearned Rent Revenue, $5,000.
C) debit Unearned Rent Revenue, $30,000; credit Rent Revenue, $30,000.
D) debit Cash, $30,000; credit Rent Revenue, $30,000.