Question

Jisue Construction Company received $12,000 for six months rental income in advance on November 1, 2020, and credited the Rental Revenue account for $12,000. The required adjusting entry on December 31, 2020, would include a Group of answer choices

Answer 1

Debit : Rent in Advance $4,000

Credit : Rent Income $4,000

Step-by-step explanation:

When Rent was paid in advance :

Debit : Cash $12,000

Credit : Rent in Advance $12,000

The required adjusting entry on December 31, 2020 :

Debit : Rent in Advance $4,000

Credit : Rent Income $4,000