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  3. the company began subleasing office space in its n

The company began subleasing office space in its new building on November 1. At December...

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Accounting

The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease.

Date Term (no. of months) Monthly rent No. of leases
November 1 6 $5,000 6
December 1 6 $7,500 7

The adjusting entry at December 31 will include:
  • A. A credit rent revenue of $72,500
  • B. A credit to rent expense of $60,000
  • C. A credit to unearned revenue of $18,750
  • D. A debit to unearned revenue of $72,500
  • E. A credit to unearned revenue of $112,500
  • F. A credit to unearned revenue of $495,000
  • G. A debit to unearned rent revenue of $112,500
  • H. A debit to rent revenue of $60,000

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