Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134833156
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 3.21AE
LO 3
(Learning Objective 3: Adjust the accounts) Jenkins Rentals Company faced the following situations. Journalize the
- a. The business has interest expense of $3,100 that it must pay early in January 2021.
- b. Interest revenue of $4,400 hoe been earned but not yet received.
- c. On July 1, 2020, when the business collected $14,200 rent in advance, it debited cash and credited unearned Rent Revenue The tenant was paying for two years rent.
- d. Salary expense is $5,700 per day—Monday through Friday—and the business pays employees each Friday This year. December 31 falls on a Thursday.
- e. The unadjusted balance of the Supplies account is $3,100. The total cost of supplies on hand s $1.200.
- f. Equipment was purchased on January 1 of this year at a cost of $140,000. The equipment’s useful life is five years. There is no residual value. Record
depreciation for this year and then determine the equipment's bock value.
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During the last week of 2020, Grandma’s House Inc. received a $96,000 prepayment for 2021 rent of a building from one of its tenants, Red-Riding-Hood. Grandma’s House recorded the receipt as rent revenue. The error was discovered midway through 2021. What journal entry should Grandma’s House record in 2021 to correct the error?
Group of answer choices
dr. Rent Expense $48,000; cr. Revenue $48,000.
dr. Deferred Revenue $96,000; cr. Revenue $96,000.
dr. Retained earnings $96,000; cr. Revenue $96,000.
None of the options listed.
dr. Retained earnings $96,000; cr. Deferred revenue $48,000; cr. Revenue $48,000.
On 1.7.2019 XY company received
rental revenue in advance from
customer of OMR 3600 for two years.
in the journal entry, the credit side is:
Select one:
a. Accrued rent 3600
b. Unearned rental revenue 3600
O c. Accrued rent 3600
O d. Unearned rental revenue 1800
e. Rent outstanding 3600
On the 1.7.2019 XY company received rental revenue in advance from customers of OMR 2400 for two years. in the journal entry, the credit side is:
Select one:
a. None of These
b. Prepaid rent 2400
c. unearned revenue 2400
d. Accrued rent 2400.
Chapter 3 Solutions
Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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