The entry to journalize the adjusting entry for unearned rent revenue that has now been earned is
A) debit Rent Income; credit Unearned Rent Income.
B) debit Unearned Rent Income; credit Income Summary.
C) debit Income Summary; credit Unearned Rent Income.
D) debit Unearned Rent Income; credit Rent Income.

Question

Quizplus · Accepted Answer

When unearned rent revenue has been earned, it is necessary to move the amount from a liability account (Unearned Rent Income) to an income account (Rent Income). This is done by debiting Unearned Rent Income to decrease the liability and crediting Rent Income to increase the income.

The Entry to Journalize the Adjusting Entry for Unearned Rent