The Mercury Company rents out a portion of its office space to another company.At the beginning of 2016 the balance in the Unearned Rent Revenue account was $3,400.During 2016,Mercury recognized $16,600 of rent revenue.If the ending balance of Unearned Rent Revenue is $2,600,how much cash was received from the tenant for rent during 2016?
A)$14,000
B)$16,600
C)$17,400
D)$15,800

Question

Quizplus · Accepted Answer

The change in Unearned Rent Revenue can be calculated as follows:

Beginning balance + Rent received - Rent recognized = Ending balance
$3,400 + X - $16,600 = $2,600
Solving for X, we get:

X = $15,800

Therefore, the cash received from the tenant for rent during 2016 was $15,800. The correct answer is D.

The Mercury Company Rents Out a Portion of Its Office