Adjusting Entries: Unearned rent at 1/1/06 was $3,300 and at 12/31/06 was $9,000. The records indicate cash receipts from rental sources during 2006 amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. For each journal entry write Dr for debit and Cr for credit.
The solution concisely illustrates how to prepare the adjusting entry for unearned rent in the case described above. This is completed in under 50 words. Although this response is short, it provides everything which is needed to accurately address this question.