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angel314
Feb 26, 2012, 08:55 PM
On October 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the unearned rent acct. Record the adjustment necessary to recognize three month's rent.

If anyone is out there is this right? I posted Rent expense 2100 and unearned rent 2100. Wasn't sure if posting was to unearned rent or prepaid rent

pready
Feb 27, 2012, 07:33 AM
Debit Unearned Rent Revenue for 2,100
Credit Rent Revenue for 2,100

You received rent from a tenant, which is revenue to you. If you had paid for rent then it would have been rent expense.