A company pays $120,000 to rent a building for forty days. After nineteen days, financial statements are to be prepared. If the company originally recorded the $120,000 paymentin rent expense, which of the following adjusting entries should be made prior to producing financial statements.Debit prepaid rent $63,000, and credit rent expense $63,000.Debit rent expense $57,000, and credit prepaid rent $57,000.Debit prepaid rent $57,000, and credit rent expense $57,000.O Debit rent expense $63,000, and credit prepaid rent $63,000.

The objective of the question is to determine the correct adjusting entry for the rent expense in…

Answered: A company pays $120,000 to rent a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For the following indenendent cases, in the space provided, calculate the amount of revenue that should be recordeu in 2019 under the revenue recognition principle (point of sale). 1. Company A rents office space to tenants. On October 1, 2019 they collected $18,000 from a tenant which represents 12 month's rent paid in advance. 2. Company B sells heavy equipment. On December 1, 2019 a customer paid a $10,000 deposit towards the purchase of a $50,000 piece of equipment. The equipment was delivered on January 16, 2020 and the balance was paid that date. 3. On December 29, 2019 Company C ships $15,000 worth of goods to a customer, F. O. B. destination. The goods arrive on January 3, 2020at the customer's office. The customer pays for the goods On February 1, 2020. 4. Company D provides legal services for clients. On December 2, 2019 a client hires the firm and pays a $10,000 advance payment. The firm did $4,ĝ00 of service in 2019.
The company receives rent revenue from a client for July and next 3 months on July 31 for 18.000 TL. Which of the following journal entries would be recorded on July 31? a.18.000 TL debit to 100-Cash and 18.000 TL debit to 380-Unearned Revenue b.18.000 TL debit to 100-Cash; 4.500 TL credit to 649-Other revenue (Rent) and 13.500 TL credit to 381-Accrued Expense c.4.500 TL debit to 770-GAE(Rent) and 13.500 TL debit to 180 Prepaid Expense (Rent); 18.000 credit to 100-cash d.18.000 TL debit to 100-Cash; 4.500 TL credit to 649-Other revenue (Rent) and 13.500 TL credit to 380-Unearned Revenue
On January 1 of the current year, Jepetto Company paid $300 rent to cover six months (January through June). Jepetto recorded this transaction as follows: Date Debit Jan 1 Prepaid Rent Cash Jepetto adjusts the accounts at the end of each month. Based on these facts, the adjusting entry at the end of January should include Show Transcribed Text OA. a debit to Prepaid Rent for $250. OB. a debit to Prepaid Rent for $50. OC. a credit to Prepaid Rent for $250. OD. a credit to Prepaid Rent for $50. Jan 1 Accounts Prepaid Rent Cash ROCOS On January 1 of the current year, Belle Company paid $600 rent to cover six months (January through June). Belle recorded this transaction as follows: Date Accounts Debit OA. decrease by $100 B. decrease by $200 OC. increase by $200 OD. increase by $100 300 ACEC 600 Credit Credit 600 Belle's adjusting entry at the end of February included a debit to Rent Expense in the amount of $100. What effect does the adjusting entry have on Belle's net income for…
INSTRUCTIONS: (1) Complete the adjustments section of the worksheet [WS]. Use the following information regarding unadjusted items. (a) On September 30, the firm received its utilities bill for the month of September amounting to P14,300. This remains to be unpaid at month-end. Record an adjustment for the utilities for the month of September. Accrued Expense (b) On September 21, the firm received a 6% 90-day note for money lent to Ling Ying Wei amounting to P400,000. The remainder of the amount pertains to a 12-month 9% promissory note received on May 1, 2021. Record an adjustment for the accrued interest from both notes for the month of September. Accrued Income (c) On September 30, an inventory of Warehouse Supplies and Office Supplies showed that items costing P127,000 and P12,000 were on hand respectively. Record an adjustment for the supplies used in September. Prepaid Expense (d) On July 1, 2021, the firm purchased a six-month insurance policy for P232,000. Record an…
How to track the following revenue recognitions as a journal entry: A firm rents psace in its store to a travel agency for $9,000/mo effective March 1. Receives $18,000 cash on March 1 for two months rent. Same as above except; firm receives teh check for the March and April rent on April 1.
On November 1, $4,800 of rent on equipment for the next six months was paid and charged to Prepaid Rent. At the end of the year, the financial statements would report: Multiple Choice Rent Expense, $1,600; Prepaid Rent $3,200 Rent Expense, $1,600, Prepaid Rent $4,800 Rent Expense, $3,200; Prepaid Rent $1,600 Rent Expense, $4,800; Prepaid Rent $0
Wilson Company paid $6,300 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $6,300, and no adjustments had been made previously. The adjusting entry required on December 31 is: Multiple Choice O O O Debit Prepaid Insurance, $1,575; credit Insurance Expense, $1,575. Debit Cash, $6,300; Credit Prepaid Insurance, $6,300. Debit Prepaid Insurance, $3,150; credit Insurance Expense, $3,150. O Debit Insurance Expense, $1,575; credit Prepaid Insurance, $1,575. Debit Insurance Expense, $3,150; credit Prepaid Insurance, $3,150.
The following information relates to the Muscat Company at the end of 2019. The .accounting period is the calendar year On July 1, 2019, cash of OMR 48,000 was received from customers for a 36-month service period beginning on that date. The receipt was recorded by a debit to Cash and a credit to Unearned Service Revenue. OMR 8,000 was earned on December 31; the company should make the following :adjusting entry اخترأحد الخيارات a. None of the answers are correct b. DEBIT Cash OMR 8,000 and CREDIT Service Revenue OMR 8,000 c. DEBIT Cash OMR 8,000 and CREDIT Unearned Service Revenue OMR 8,000 d. DEBIT Cash OMR 48,000 and CREDIT Service Revenue OMR 48,000 e. DEBIT Unearned Service Revenue OMR 8,000 and CREDIT Service Revenue OMR 8,000
Sheridan Online Company has the following liability accounts after posting adjusting entries: Accounts Payable $72,500, Unearned Ticket Revenue $29,000, Warranty Liability $22,500, Interest Payable $8,900, Mortgage Payable $122,000, Notes Payable $83,500, and Sales Taxes Payable $15,500. Assume the company's operating cycle is less than 1 year, ticket revenue will be recognized within 1 year, warranty costs are expected to be incurred within 1 year, and the notes mature in 3 years. (a) Prepare the current liabilities section of the balance sheet, assuming $37,500 of the mortgage is payable next year. SHERIDAN ONLINE COMPANY Partial Balance Sheet
Gizmo Inc. purchased a one-year insurance policy on October 1 for $5,520. Required: Prepare the adjusting entry on December 31. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Gizmo Inc. General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Office Building 17 Accumulated Depreciation-Office Building LIABILITIES 21 Accounts Payable 22 Notes Payable 23 Unearned Fees 24 Wages Payable 25 Interest Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Prepare the adjusting entry on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries.The company prepares annual adjusting entries.
On 1 January 2019, the company paid OMR 4500 cash as rent expenses for two months. Select one: a. Date Particulars Debit Credit (OMR) (OMR) 1 Jan Prepaid Rent 4500 Cash 4500 O b. Date Particulars Debit Credit (OMR) (OMR) 1 Jan Cash Prepaid rent 43500 4500 c. None of these O d. Date Particulars Debit Credit (OMR) (OMR) 1 Jan Rent 4500 Cash 4500

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