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shtirl [24]
3 years ago
8

Bonita Realty Management Co. received a check for $32,400 on August 1, which represents a one year advance payment of rent on an

office it rents to a client. Unearned Rent Revenue was credited for the full $32,400. Financial statements are prepared on December 31. The appropriate adjusting journal entry to make on December 31 of the first year would be a
$13,500 debit to Unearned Rent Revenue and a $13,500 credit to Rent Revenue.
Solution:
The year-end adjusting entry reduces the liability (i.e., Unearned Revenue) and increases Revenue for the amount of revenue earned during this accounting period.
Revenue earned Aug. through Dec. = 32,400 x 5/12 = 13,500

Chapter 4, Learning objective 4 T/F
Business
1 answer:
Pachacha [2.7K]3 years ago
5 0

Answer:

True

Explanation:

The adjusting journal entry is shown below:

Unearned Rent Revenue A/c Dr $13,500

         To Rent revenue A/c $13,500

(Being the unearned rent revenue is recorded)

The computation is given below:

= Check received × number of months ÷ total number of months in a year

= $32,400 × 5 months ÷ 12 months

= $13,500

The five months is calculated from August 1 to December 31

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4 0
1 year ago
In case of normal goods, demand curve shows a) Negative slopes b) positive slopes c) Zero slopes d) none of these
ExtremeBDS [4]

Answer:

a. Negative slopes

Explanation:

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3 years ago
On December 1, 2019, Ral received advance rental of $27,000 from a tenant for a three-year lease commencing January 1, 2020 to c
adelina 88 [10]

Answer:

Nil

Explanation:

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Being entries to recognize cash received in advance for rental income.

As such, no rental income was earned in 2019. Amount to be included in Ral's taxable income for rent revenue is nil.

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The rule to remember when accounting for bonds sold at a premium or at a discount is that Bonds Payable is always credited for t
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Answer:

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The complete journal record should be:

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Since cash is an asset and it increases, it should be debited.

Since bonds payable and premium on bonds payable are liabilities and they increase, they should be credited.

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3 years ago
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Answer:

Option b                        

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