The adjusting entry for rent earned that is currently recorded in the unearned rent account is:?

Question

Unearned Rent, debit; Rent Revenue, credit

Rent Revenue, debit; Unearned Rent, credit

Unearned Rent, debit; Income Summary, credit

Rent Expense, debit; Unearned Rent, credit

Answer 1

Unearned Rent is a liability account with a usual credit balance that reflects the amount that has been paid in but not been earned yet. As time passes and the rent is recognized as earned, you need to debit (reduce) Unearned Rent and credit Rent Revenue.