L.Lane received $12,000 from a tenant on December 1 for four months' rent of an office.This rent was for December,January,February,and March.If Lane debited Cash and credited Unearned Rental Income for $12,000 on December 1,what necessary adjustment would be made on December 31?
A) Unearned Rental Income .............3,000
Rental Income ....................3,000
B) Rental Income ......................3,000
Unearned Rental Income ...........3,000
C) Unearned Rental Income .............9,000
Rental Income ....................9,000
D) Rental Income ......................9,000
Unearned Rental Income ...........9,000

Question

Quizplus · Accepted Answer

On December 31, one month of rent has been earned, so $3,000 (one-fourth of $12,000) should be recognized as rental income. The adjustment involves debiting Unearned Rental Income and crediting Rental Income for $3,000.

LLane Received $12,000 from a Tenant on December 1 for Four