On September 1, 20X1, RF Corporation Collected Rent of $2,400 $\begin{array}{|l|r|r|}\hline \text { Cash } & 2,400 & \\\hline \text { Rent revenue } & & 2,400 \\\hline\end{array}$

Short Answer

On September 1, 20X1, RF Corporation collected rent of $2,400 for one year in advance. The three possible ways in which RF Corporation could have recorded the transaction on September 1, 20X1, (i.e., the original journal entry) are listed below. Also listed are three different adjusting entries that could be made on December 31, 20X1 (the end of the accounting year). Match each journal entry with the appropriate adjusting entry. Journal Entry, Sept. 1, 20X1.
A.
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,400 & \\\hline \text { Rent revenue } & & 2,400 \\\hline\end{array}$

B.
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,400 & \\\hline \text { Unearned rent revenue } && 2,400 \\\hline\end{array}$

C.
$\begin{array}{|l|r|r|}\hline \text { Cash } & 2,400 & \\\hline \text { Rent revenue } & & 800 \\\hline \text { Unearned rent revenue } & & 1,600 \\\hline\end{array}$
Adjusting Entry, Dec 31, 20X1

1.
$\begin{array}{|c|r|r|}\hline \text { Unearned rent revenue } & 800 & \\\hline \text { Rent revenue } & & 800 \\\hline\end{array}$

2.
$\begin{array}{|c|r|r|}\hline \text { Rent revenue } & 1,600 & \\\hline \text { Unearned rent revenue } & & 1,600 \\\hline\end{array}$

3. No adjusting entry needed