Adjusting entry for Rent Revenue:
It is given that a customer rents a vehicle for three months from Commodores rental on November 1, paying $4,050 ($1,350/month). The adjustment is needed to be made for 2 months period (Nov. 1 to Dec. 31)= 1350*2 = $2,700
The adjusting entry for Rent Revenue as on Dec. 31 shall be as follows:
Unearned Rent Revenue Debit $2,700
Rent Revenue Credit $2,700
(Being adjustment made for Rent Revenue)
