(25) On June 1 of Year 1, a company paid $12,000 cash for rent. This $12,000rental payment covers the period from June 1 of Year 1 to May 31 of Year 2.口Which debit or credit is correctly included in the journal entry necessary on June1 to record this payment of rent in advance?Credit to prepaid rent for $12,000.◇ Credit to rent expense for $12,000.◇ Debit to rent expense for $12,000.O Debit to prepaid rent for $12,000.

Step 1: Identify the TransactionThe company paid $12,000 cash for rent in advance.This payment…

Answered: (25) On June 1 of Year 1, a company…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Suppose Alladin Travel, Inc., holds a note receivable as an investment. At the endof June, $100 of interest revenue has been earned. Journalize the accrued revenueadjustment at June 30.
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K Cheap Inc. borrowed $95,000 on October 1 by signing a note payable to Scotiabank. The interest expense for each month is $554. The loan agreement requires Cheap Inc. to pay interest on December 31. 1. Make Scotiabank's adjusting entry to accrue interest revenue and interest receivable at October 31, at November 30, and at December 31. Date each entry and include its explanation. 2. Post all three entries to the Interest Receivable account. You need not take the balance of the account at the end of each month. 3. Record the receipt of three months' interest at December 31. 1. Make Scotiabank's adjusting entry to accrue interest revenue and interest receivable at October 31, at November 30, and at December 31. Date each entry and include its explanation. (Record debits first, then credits. Enter explanations on the last line.) Start by making the adjusting entry to accrue monthly interest revenue for October. Date Oct Journal Entry Accounts and Explanation Debit Credit

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