On december 1, 2018, shamrock company received $5,700 from destiny, inc. for rent of an office owned by shamrock company. the payment covers the period from december 1, 2018 through february 28, 2019. shamrock company recorded this as deferred rent revenue when it was received on december 1. the adjusting entry on december 31 would include a:

unearned revenue    1,900 debit

        rent revenue                     1,900 credit

Explanation:

collection of $5,700 to cover rent to February 28th from December 1st

Total of 3 month worht of rent.

5,700 / 3 = 1,900

At December 31th:

we will recognize the accrued rent revenue and decrease our unearned revenue by the same amount.

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