On 1 March 2018, Indiana Ltd Rented Out Part of Its

Multiple Choice

On 1 March 2018, Indiana Ltd rented out part of its manufacturing premises and collected $6000 in advance for a one year period. The receipt was credited to a liability account. At 31 December 2018, Indiana Ltd's end of financial year, the following adjusting journal should be recorded:

A) DR Unearned rent income $4500; CR Rent income $4500
B) DR Rent income $3000; CR Unearned rent income $3000
C) DR Unearned rent income $5000; CR Rent income $5000
D) DR Rent receivable $5000; CR Rent income $5000