La Bouche Corporation owns a warehouse. On November 1 it rented storage space to

Question

La Bouche Corporation owns a warehouse. On November 1 it rented storage space to a lesee ( tenant) for 3 months for a total cash payment of $2400.00 received in advance. Prepare La Bouche November 1 journal entry and the Dec 31 annual adjusting entry.

So I wrote: 3-6
November 1:
dr. Bank $2400.00
cr. Prepaid Rental Income $2400.00
To record receipt of 3 months rent on storage space, paid in advance
December 31:
dr. Prepaid Rental Income $1600($800*2)
cr. Income from storage unit rental $1600 (I would think I would make my adjusting entry in Jan 31 for the remainder $800 to comply w accounting standards)

But that would leave it understated before the adjustment, so I reworked it
Nov 1
Cash 2400
Rent Revenue 800
Unearned Rent Revenue 1600
Dec 31
Unearned Rent Revenue 800
Rent Revenue 800 ; and this is from the thinking

Nov 1: A. debit Bank 2400 and credit prepaid rent 2400 To record receipt of 3 months rent on storage space, paid in advance
B. debit rent expense 800 and credit prepaid rent 800
C. debit prepaid rent 1600 and credit rent expense 1600
Adjusting entry Dec 31
D. debit prepaid rent 800 and credit rent expense 800

but I am all over the place , I think the last one I went somewhere else? and can't make up my mind what is the correct answer? I get confused please help :) Thank you in advance

Explanation / Answer

This is how it is recorded: dr. Bank $2400.00 cr. Prepaid Rental Income $2400.00 To record receipt of 3 months rent on storage space, paid in advance December 31: dr. Prepaid Rental Income $1600 cr. Income from storage unit rental $1600

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