shaker property management rents space to a tenant for $1,200 per month. the tenant has agreed to pay the…

shaker property management rents space to a tenant for $1,200 per month. the tenant has agreed to pay the november, december, and january rents in full on january 15. which of the below is the adjusting entry for shaker on december 31?\na debit accounts receivable $2,400; credit rent revenue $2,400.\nb debit unearned revenue $1,200; credit rent revenue $1,200.\nc debit accounts receivable $1,200; credit rent revenue $1,200.\nd debit accounts receivable $3,600; credit rent revenue $3,600.

shaker property management rents space to a tenant for $1,200 per month. the tenant has agreed to pay the november, december, and january rents in full on january 15. which of the below is the adjusting entry for shaker on december 31?\na debit accounts receivable $2,400; credit rent revenue $2,400.\nb debit unearned revenue $1,200; credit rent revenue $1,200.\nc debit accounts receivable $1,200; credit rent revenue $1,200.\nd debit accounts receivable $3,600; credit rent revenue $3,600.

Answer

Brief Explanations:

By December 31, Shaker has earned rent for November and December but has not received the cash. Revenue should be recognized when earned. The monthly rent is $1,200, so for two months (November and December), the amount is $1,200 * 2 = $2,400. Accounts Receivable is debited to record the amount owed by the tenant, and Rent Revenue is credited to recognize the earned revenue.

Answer:

A. debit Accounts Receivable $2,400; credit Rent Revenue $2,400