ABC Coleased a Portion of Its Store to Another Company for for Eight

Multiple Choice

ABC Co.leased a portion of its store to another company for eight months beginning on October 1,2014,at a monthly rate of $800.This other company paid the entire $6,400 cash on October 1,which ABC Co.recorded as unearned revenue.The journal entry made by ABC Co.at year-end on December 31,2014,would include a:

A) Debit to Rent Earned for $2,400.
B) Credit to Unearned Rent for $2,400.
C) Debit to Cash for $6,400.
D) Credit to Rent Earned for $2,400.
E) Debit to Unearned Rent for $4,000.