(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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The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021: Debit Credit Interest expense 5,400 Interest payable Rent expense Prepaid rent Interest receivable Interest revenue 5,400 17,500 17,500 450 450 Additional information: 1. The company borrowed $180,000 on March 31, 2021. Principal and interest are due on March 31, 2022. This note is the company's only interest-bearing debt. 2. Rent for the year on the company's office space is $42,000. The rent is paid in advance. 3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 3.0% due in one year. Required: 1. What is the interest rate on the company's note payable? 2. The 2021 rent payment was made at the beginning of which month? (Do not round your intermediate calculation.) 3. How much did Eldorado lend its customer on October 31?
16. MC.U3.021 Cave Man Company received cash revenue, $3,500. The accountant would record the following journal entry: a. Cash $3,500 $3,500 $3,500 Accounts Receivable b. Income from Services Cash c. Cash Income from Services d. Cash C. Man, Capital C. Man, Capital b. Income from Services Cash c. Cash Income from Services 17. MC.03.022 Stonehenge Company received cash on account, $2,500. The accountant would record the following journal entry: a. Cash $2,500 d. Cash Accounts Receivable a. Income from Services Cash b. Cash E. Elijah, Capital $3,500 c. E. Elijah, Drawing Cash $3,500 d. Wages Expense Cash $3,500 $2,500 $2,500 18. MC.03.023 E. Elijah, owner, withdrew $3,000 for personal use. The accountant would record the following journal entry: $3,000 $3,000 $2,500 $3,000 $3,500 $3,500 $3,000 $3,000 $2,500 $2,500 $2,500 $2,500 $3,000 $3,000 $3,000
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A business borrowed $59,037 on March 1 of the current year by signing a 30 day, 11% interest bearing note. Assuming a 360-day year, when the note is paid on March 31, the entry to record the payment should include a debit to Interest Payable for $541 debit to Interest Expense for $541 credit to Cash for $59,037 credit to Cash for $65,531
On 1 May 20X0, A pays a rent bill of $1,800 for the period to 30 April 20X1. What is the charge to the income statement and the entry in the statement of financial position for the year ended 30 November 20X0?A $ 1,050 charge to income statement and prepayment of $750 in the statement of financial positionB $ 1,050 charge to income statement and accrual of $750 in the statement of financial positionC $1,800 charge to income statement and no entry in the statement of financial positionD $750 charge to income statement and prepayment of $ 1,050 in the statement of financial position Answer the question and explain why did you choose this answer
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