Kizspy | Question: 35 (Choose 1 answer)
PPWC Co. leased a portion of its store to another company for eight months beginning on October 1,2009, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co.recorded as unearned revenue. The journal entry made by PPW Co. at year- end on December 31, 2009 would include:
A. A debit to Rent Earned for $2,400.
B. A credit to Unearned Rent for $2,400.
C. A debit to Cash for $6,400.
D. A credit to Rent Earned for $2,400.
E. A debit to Unearned Rent for $4,000.
