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XYZ Receives $1000 in June for Rent from a Client

Question 7

Multiple Choice

XYZ receives $1000 in June for rent from a client for the month of July. How should this be recorded by XYZ assuming a balance date of 30 June?


A) Debit cash $1000 and credit accounts receivable $1000
B) Debit cash $1000 and credit unearned revenue $1000
C) Debit unearned revenue $1000 and credit cash $1000
D) Debit cash $1000 and credit prepaid rent $1000

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