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On September 1, Watson Company received $35,100 for six months of rent in advance. On September 1, Watson Company credited Re
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Date General Journal Debit Credit
Dec-31 Rent revenue $      11,700.00
Unearned Rent revenue $ 11,700.00
(To record rent revenue)

Rent revenue is earned for 4 months only so the rent revenue should have been recorded for 23400 only but since it is over-recorded by 11700. The excess amount is debited and unearned revenue is credited for unearned portion.

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