On October 1, Haslip Company Rented Warehouse Space to a Tenant

Multiple Choice

On October 1, Haslip Company rented warehouse space to a tenant for $2,500 per month. The tenant paid five months' rent in advance on that date. The payment was recorded to the Unearned Rent account. The company's annual accounting period ends on December 31. The adjusting entry needed on December 31 is:

A) Debit Rent Receivable, $12,500; credit Rent Earned, $12,500.
B) Debit Rent Receivable, $7,500; credit Rent Earned, $7,500.
C) Debit Unearned Rent, $7,500; credit Rent Earned, $7,500.
D) Debit Unearned Rent, $5,000; credit Rent Earned, $5,000.
E) Debit Unearned Rent, $12,500; credit Rent Earned, $12,500.