Which entries should be prepared for cash collected pertaining to future season slips as unearned rent revenue?

When cash is collected for services that will be provided in the future, it is categorized as unearned revenue until those services are actually rendered. In this context, cash collected for future season slips should not be recognized as revenue because the revenue is not earned at the time of collection.

The correct entry to record cash collected for future services involves debiting the cash account to reflect the increase in cash, but simultaneously credits the unearned rent revenue account. This reflects that the company has an obligation to provide the slips in the future, which is why it recognizes unearned rent revenue.

In this case, the correct entry involves debiting the unearned rent revenue account and crediting rent revenue once the service is actually provided in the future, which transitions the obligation to actual revenue recognition. Thus, the business correctly acknowledges that it has received payment but has not yet fulfilled its part of the agreement, maintaining accurate financial reporting in accordance with the revenue recognition principle.