Answered: 1- Under the Income Statement method,…

1- Under the Income Statement method, the accountant records the amount paid for rent of building as: a. Rent Expense b. Rent revenue c. Prepaid rent expense d. Rent revenue received in advance

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1EB: Identify whether each of the following accounts are nominal/temporary or real/permanent. A. Rent...

See similar textbooks

Related questions

Q: 1)The largest of the Cotorra Company includes the following accounts. Explain why each account may…

A: A ledger is indeed a notebook of accounts wherein the data from the journals is categorized and…

Q: Please show working of how rent expense and prepaid rent were calculated on adjusted trial balance

A: The adjustment entries are prepared to adjust the revenue and expenses for the current period.

Q: a. Prepare an income statement for the year using the "functional" method with supporting notes. b.…

A: Introduction: Expenses in an income statement are categorized in keeping with their nature or…

Q: What is the Rent Expense in the adjusted trial balance columns of worksheet? A. Income statement…

A: The financial statements of the business include the cash flow statement, income statement and…

Q: Please answer in good accounting form Thankyou 4. How much should be reported as rent expense in…

A: Rent expense: It implies to the expense that is incurred by the tenant for taking a rental room from…

Q: Which of the following errors would cause the Balance Sheet and Statement of Owner’s Equity columns…

A: Financial statements: These refer to the formal or official records of the activities of the…

Q: The adjusting entry for accrued revenues includes O a. debit to an asset account. O b. credit to an…

A: Introduction: A general ledger entry made at the end of an accounting period to record any…

Q: For each of the following accounts, indicate whether the account is shown in the income statement or…

A: Financial Statement: They are annual reports of an organization summarizing the financial…

Q: Indicate the financial statement on which each of the following items appears: income statement,…

A: Balance Sheet includes asset and liability of the Company Income Statement includes revenue and…

Q: Indicate the financial statement on which each of the following items appears. income…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Identify which of the following accounts would be listed on the company’s Post-Closing…

A: Closing entries are those journal entries which are passed at the end of accounting period in order…

Q: QUESTION 1 For each of the items below, indicate how it is reported on the balance sheet or income…

A: Income statement and Balance sheet are two important financial statements of business in which there…

Q: Income statement presents a) The revenues generated ,and the expenses paid during an accounting…

A: The income statement represents the net income or loss of the company that is calculated by…

Q: Net income is shown on the work sheet as a a.debit in the Adjustments column. b.debit in the…

A: Spreadsheet: A spreadsheet is a worksheet. It is used while preparing a financial statement. It is a…

Q: Indicate the financial statement on which each of the following items appears. income…

A: Income statement is a statement which shows income and expenses of the business for the particular…

Q: Unearned Rent Revenue is a. Debited when rent is received in advance b. Revenue account c. Reported…

A: Current liabilities means those liabilities which will be paid in cash in near future generally one…

Q: Classify each of the following accounts as an Asset, Liability, or Equity account. a. Factory b.…

A: All expenses which are paid in advance are current assets. All revenues received in advance are…

Q: 1. Which of the following accounts could appear in an adjusting entry, closing entry and reversing…

A: Hey there since you have posted multiple questions, we can answer only first question for you,…

Q: Indicate in the space provided by each item whether it would appear on the income statement (IS),…

A: Introduction: Balance sheet: All assets and liabilities are shown in Balance sheet. It tells the net…

Q: 1-7. Indicate whether the following items would appear on the income statement (IS), or balance…

A: Income statement consists of all incomes and all expenses incurred in usual/ordinary course of…

Q: Indicate the financial statement on which each of the following items appears. income…

A: Income statement is a statement which shows income and expenses of the business for the particular…

Q: Which of the following accounts are debited to record increases? A. assets and liabilities…

A: T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this…

Q: 2. Indicate whether each of the following items is: an Asset , liability, or part of Owner's equity.…

A: Asset: In Financial terms, assets are anything that is held by a business that results in some…

Q: Indicate the financial statement on which each of the following items appears: income statement,…

A: income statement is a statement that is prepared by the company to know the net income on by the…

Q: Expenses paid in advance are recorded: Select one: a. Revenue b. Expenses. c. Liabilities d. Assets

A: Expenses are the amount incurred by the company to generate profit or revenue. Examples of expenses…

Q: Indicate the financial statement on which each of the following items appears: income statement,…

A: >Accounts are shown as Revenue, Expense, Assets, Liabilities or Equity account based on their…

Q: The adjusting entry to record depreciation includes O a. a debit to an expense account. b. a debit…

A: Depreciation Expenses refers to gradually decrease in the value of assets over the year due to its…

Q: Indicate the financial statement on which each of the following items appears. income…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: a. Interest Revenue b. Accounts Payable С. Calhoun, Capital d. Office Supplies e. Advertising…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Unearned rent revenue is reported on: O A. O B. OC. Expenses section in the income statement…

A: The revenues that are received by the business but not earned yet are said to be Unearned revenue.

Q: All of the following closing entries are correct, except for a. debit Unearned Rent, credit Income…

A: All temporary accounts are closed at the time of passing the closing entries.

Q: Prepare the adjusting entry to account for the depreciation of the company's building and fixtures…

A: Requirement a:

Q: Unearned rent revenue is reported on: OA Expenses section in the income statement O B. O OD.…

A: unearned rent revenue is the rent amount received during the year but the rental income is related…

Q: The Income Statement Debit column of the worksheet contains A. expense account balances B. asset…

A: Worksheet is a 10 column account or sheet which first shows unadjusted general ledger balances, then…

Q: An item that will not be included in the statement of receipts and payments is? A.depreciation…

A: Statement of receipts and payments will includes all cash and Bank receipts and Payments whether…

Q: Identify each of the following accounts of Dispatch Services Co. as asset, liability, owner’s…

Q: Select whether each of the following would appear on the income statement, statement of owner's…

A: The financial statements of the business includes income statement and balance sheet and statement…

Q: his account represents the amount paid in advance for future cost of items or services. a. Revenue…

A: Every transaction is recorded in books of account and has got different relevance. Assets ,…

Q: For each account listed, identify whether the account would appear in either the income statement…

A: Accounts are Recorded in the Income statement section or balance sheet section depending on their…

Q: Classify each of the following a Liability, or Equity account. a. Store Supplies b. Prepaid Rent c.…

A: Classification of the accounts are as follows :

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

1- Under the Income Statement method, the
accountant records the amount paid for
rent of building as :
a. Rent Expense
b. Rent revenue
c. Prepaid rent expense
d. Rent revenue received in advance

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Rent collected in advance is an example of which of the following? A. accrued expense B. accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (unearned revenue)
Identify whether each of the following accounts would be considered a permanent account (yes/no) and which financial statement it would be reported on (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Accumulated Depreciation B. Buildings C. Depreciation Expense D. Equipment E. Fees Earned Revenue F. Insurance Expense G. Prepaid Insurance H. Supplies Expense I. Dividends
Identify whether each of the following accounts are nominal/temporary or real/permanent. A. Rent Expense B. Unearned Service Fee Revenue C. Interest Revenue D. Accounts Payable
Identify which type of adjustment is indicated by these transactions. Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. rent paid in advance for use of property B. cash received in advance for future services C. supplies inventory purchased D. fees earned but not yet collected
Consider the following accounts and identify each account as an Asset(A), Liability(L), or Equity(E). Thanks! taxes payable Rent Expesnes Furniture Nunez,Withdrwal Unearned revenue
What is the Rent Expense in the adjusted trial balance columns of worksheet? A. Income statement debit B. Balance sheet debit C. Income statement credit D. Balance sheet credit
Indicate whether each of the following items is a real ornominal account and whether it appears in the balancesheet or the income statement.(a) Prepaid Rent.(b) Salaries and Wages Payable.(c) Inventory.(d) Accumulated Depreciation—Equipment.(e) Equipment.(f) Service Revenue.(g) Salaries and Wages Expense.(h) Supplies.
Instruction: a) Journalize the above transactions using the perpetual method and make the necessary adjustments for depreciation (straight-line method), supplies expense, rent expense, interest expense, and interest revenue b) make the adjusted trial balance
Which of the following would you expect to find in acorrectly prepared income statement?a. Cash balance at the end of the period.b. Revenues earned during the period.c. Contributions by the owner during the period.d. Expenses incurred during the period to earn revenues.
Identify each of the following accounts of Dispatch Services Co. as asset, liability, owner’s equity, revenue, or expense Interest Earned Note payable Unearned Revenue Land Owner Investment Wages Expense Accounts Receivable Wages Payable
Identify whether each of the following accounts would be considered a permanent account (yes/no) and which financial statement it would be reported on (Balance Sheet, Income Statement, or Retained Earnings Statement). Accumulated Depreciation Buildings Depreciation Expense Equipment Fees Earned Revenue Insurance Expense Prepaid Insurance Supplies Expense Dividends
Indicate (by choosing the appropriate letter) whether each of the following would be reported in the section of financial statements identified as: (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, (e) expense, or (f) long-term liabilities. (An item may be used multiple times) (1) ____ Accumulated depreciation-Truck (2) ____ Rent expense (3) ____ Fees earned (4) ____ Salaries payable (5) ____ Prepaid rent (6) ____ Store supplies (7) ____ Advertising expense (8) ____ Unearned rent (9) ____ Note payable (all of it is due in 2025) (10) ____ Truck