On December 1, 2000, Marimar, a lessee paid P 18.000 to XYZ Company representing the rent for 3 months. Rent income was crodited on this date by XYZ Company. In the books of the lessor, what amount should be recognized as liability on December 31, 2000, the end of the accounting period? O. P 12.000 P 16,000 P 16,000 P 3,000

On December 1, 2000, Marimar, a lessee paid P 18.000 to XYZ Company representing the rent for 3 months. Rent income was crodited on this date by XYZ Company. In the books of the lessor, what amount should be recognized as liability on December 31, 2000, the end of the accounting period? O. P 12.000 P 16,000 P 16,000 P 3,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

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The balance in the unearned rent account for Jones Co. as of December 31 is $1 ,20(). If Jones Co. failed to record the adjusting entry for $600 of rent earned during December, the effect on the balance sheet and income statement for December would 1w: A. Assets understated by $600; net income overstated by $600. B. Liabilities understated by $600; net income understated by $600. C. Liabilities overstated by $600; net income understated by $600. D. Liabilities overstated by $600; net income overstated by $600.
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.
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