Apartments-for-Rent Corporation received cash of $7,200 on August 1, 2020 for one year's rent in advance and recorded the transaction with a credit to unearned Rent. The December 31, 2020 adjusting entry is Multiple Choice Debit Rent Revenue and credit Unearned Rent, $3,000 None of the other alternatives are correct Debit Rent Revenue and credit Unearned Rent, $4,200 Debit Cash and credit Unearned Rent, $4,200 Debit Unearned Rent and credit Rent Revenue, $3,000

Apartments-for-Rent Corporation received cash of $7,200 on August 1, 2020 for one year's rent in advance and recorded the transaction with a credit to unearned Rent. The December 31, 2020 adjusting entry is Multiple Choice Debit Rent Revenue and credit Unearned Rent, $3,000 None of the other alternatives are correct Debit Rent Revenue and credit Unearned Rent, $4,200 Debit Cash and credit Unearned Rent, $4,200 Debit Unearned Rent and credit Rent Revenue, $3,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 3MCQ

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In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
Hurd Inc. prepays rent every 3 months on March 1, June 1, September 1, and December 1. Rent for the 3 months totals S3,600. On December 31, 2019, Hurd will report Prepaid Rent of: a. $0 b. $1,200 c. $2,400 d. $3,600
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