PE 3-4B Adjustment for unearned revenue

On August 1, 2012, Treadwell Co. received $10,500 for the rent of land for 12 months.
Journalize the adjusting entry required for unearned rent on December 31, 2012.

Answer:
Unearned Rent ............................................................... 4,375
                          Rent Revenue ........................................................... 4,375
                                        Rent earned [($10,500/12) × 5 months].