Fragment Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $975 Fragment collected the entire $7,800 cash on October 1 and recorded it as unearned revenue Assuming adjusting entries are only made at year end, the adjusting entry made on December 31 would be Multiple Choice A debit to Unearned Revenue and a credit to Rent Revenue for $4,875 A debit to Rent Revenue and a credit to Cash for $2,925 A debit to Rent Revenue and a credit to Unearned Revenue for $2,925 A debit to Cash and a credit to Rent Revenue for $7,800 A debit to Unearned Revenue and a credit to Rent Revenue for $2,925

Question: Fragment Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $975. Fragment

Fragment Company leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $975. Fragment collected the entire $7,800 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made on December 31 would be:

Multiple Choice

A debit to Unearned Revenue and a credit to Rent Revenue for $4,875.
A debit to Rent Revenue and a credit to Cash for $2,925.
A debit to Rent Revenue and a credit to Unearned Revenue for $2,925.
A debit to Cash and a credit to Rent Revenue for $7,800.
A debit to Unearned Revenue and a credit to Rent Revenue for $2,925.

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