Question

with closing entries, one would expect to find all of the following except a. a debit...

with closing entries, one would expect to find all of the following except
a. a debit to retained earnings and a credit to dividends
b. a debit to sales revenue and a credit to Income Summary.
c. a debit to Income Summary and a credit to Loss on Sale of Land.
d. a debit to Unearned Rent and a credit to Income Summary.
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Answer #1

Correct answer for this question is Option d. a debit to Unearned rent and a credit to Income Summary.

Unearned rent means we have received rental income in Advance .So it is a liability for us till rental income is due from the tenant .While receipt of rent in advance it will not appear in income statement of landlord because it is not the income relating to that period. So unearned rent account is not closed by transferring to profit and loss account rather the balance of unearned rent account will appear in Balance sheet as a liability.

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