1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vazorg [7]
4 years ago
7

On September 1, Walker Company received $30,900 for six months of rent in advance. On September 1, Walker Company credited Rent

Revenue, which is an alternate way of recording the initial receipt of cash. Required: Journalize the adjusting entry on December 31.
Business
1 answer:
erma4kov [3.2K]4 years ago
7 0

Answer:

As per accrual concept of accounting, income is recorded when it is earned and not when cash is received.

An income which is not yet earned i.e services for which are yet to be provided and yet cash is received against it in advance, such an advance receipt represents liability since services are yet to be provided.

The entry passed by Walker Company upon receipt being

Cash A/C                                                Dr. $30,900

     Rent Revenue A/C                                                $30,900

(Being six month rent received in advance recorded)

By Dec 31, Walker company has provided services for 3 months out of 6 months which meant half of the rent recorded as income upon receipt above, remained unearned as on Dec 31.

The Adjusting entry as on Dec 31, would be,

Rent Revenue A/C                                 Dr. $ 15,450

     To Unearned Rent Income                                  $15,450

(Being unearned rent income recorded)

This amount of $15,450 represents the rent received in advance which relates to three months against which services are yet to be provided i.e due.

You might be interested in
What organization can you contact to find local trade shows?
lara31 [8.8K]
<h3>Hello there!</h3>

Your question asks what organization you could contact to find local trade shows.

<h3>Answer: The Chamber of Commerce</h3>

The reason why "The Chamber of Commerce" is the correct answer because there are specifically the ones that deal with businesses that want to promote their business to other businesses. They help businesses network with each other.

If a business contacts The Chamber of Commerce, they will tell you where the nearest trade show is at.

A trade show is a place where businesses go to promote their businesses to other businesses, and possibly get a chance to get a partnership or cooperate with another business

<h3>Why the other answer choices are incorrect:</h3>

"The American Heart Association" is incorrect because they don't help businesses out. Their focus is to fund the research of cardiovascular diseases

"The sports arena" is because they don't deal with businesses at all. The only thing a sports arena does it showcase sports games. This answer would be easily out.

"The Department of Water and Power" is incorrect because they only work on anything electrical or water related. They build and fix things that's in the area. This answer would be easily out too.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
3 0
3 years ago
"A cross-hedging strategy is most effective with currencies that are _____; currency diversification is most effective with curr
chubhunter [2.5K]

"A cross-hedging strategy is most effective with currencies that are <u>highly positively correlated</u>; currency diversification is most effective with currencies that are <u>not highly correlated.</u>"

<u>Explanation:</u>

Cross hedging is a idea that is used to mange risk. This is done by  investing in two securities. Those two securities are correlated and that too positively. Which means their prices  goes in the identical direction. It helps in minimizing the risks associated.

So,A cross hedging strategy is most efficient when currencies are  positively correlated,

Currency diversification is a strategy where more than one currency is used in investment. It leads to less exchange rate risk. This strategy is most effective with currencies that are not highly correlated. Which means increase in one currency causes no increase in other currency.

3 0
3 years ago
Franklin, an employee of XYZ Publishing Company, hired Torrez, a freelance artist, to design the cover of a book, written by Che
MArishka [77]

Answer:

XYZ Publishing Company is the owner of the cover design.

Explanation:

When a business or even an individual hires someone to work for a specific job, the outcome of that job belongs to the employer.

For example, if I hire a carpenter and ask him to manufacture a specific type of chair that I like. Even f the carpenter contributed to the design of the chair, the chair and its design belong to me since I paid for it. Even if for some reason a lot of people like my chars and they ask the carpenter to manufacture more chairs, he would need my authorization to do it.

4 0
3 years ago
Select the budget that would most quickly achieve the financial goal of saving $6000 for college tuition. Monthly Budget Budget
Artemon [7]

Answer:

it's A.

Explanation:

Just took the test

7 0
3 years ago
When recording variances in a standard cost system: Question 22 options: A. Only unfavorable material variances are debited. B.
Phoenix [80]

Answer: D. All unfavorable variances are debited.

Explanation:

When recording variances in a standard cost system, all unfavorable variances are debited.

The reason for this is that it should be noted that the unfavorable variances simply means that there's excess production costs, and hence this will bring about reduction in the operating income. Hence, all unfavorable variances are debited.

Therefore, the correct option is D.

4 0
3 years ago
Other questions:
  • A company's marketing environment includes various ________ that are made up of groups that have an actual or potential interest
    7·1 answer
  • What product does the model show
    14·1 answer
  • What is an accident? How can an accident be prevented?
    10·2 answers
  • The key difference between mediation and arbitration is: (A) A mediator is constrained to work with the final offers given by th
    8·1 answer
  • If an oligopolist's MC curve shifts upward but still passes through the gap in the MR curve, which of the following will be the
    15·1 answer
  • buying a bond is similar to which of the following?a) getting a mortgage, b)giving a loan, c) paying a dividend, d) going into c
    9·1 answer
  • arasota Company obtained land by issuing 3,380 shares of its $12 par value common stock. The land was recently appraised at $146
    10·1 answer
  • The production process is part of the Multiple Choice transformation process. relocation process. resource acquisition process.
    15·1 answer
  • nyle Corp. owned 100 shares of Beta Corp. stock that it bought in 1993 for $9 per share. In 2014, when the fair market value of
    10·1 answer
  • True or false: Once you are signed up for overdraft protection, you cannot opt out.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!