Business, 21.12.2019 00:31 24chrim

Fragmental co. leased a portion of its store to another company for eight months beginning on october 1, at a monthly rate of $925. fragmental collected the entire $7,400 cash on october 1 and recorded it as unearned revenue. the journal entry made by fragmental co. at year-end on december 31 would be:

a debit to cash and a credit to rent revenue for $7,400.
a debit to unearned rent and a credit to rent earned for $4,625.
a debit to rent revenue and a credit to cash for $2,775.
a debit to rent revenue and a credit to unearned rent for $2,775.
a debit to unearned rent and a credit to rent earned for $2,775.

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