Financial accouthing hw questions.
Leyland Realty Company received a check for $12,000 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Rental Revenue was credited for the full $12,000. Financial statements will be prepared on July 31. Leyland Realty should make the following adjusting entry on July 31:
a. debit Rental Revenue, $2,000; credit Unearned Rental Revenue, $2,000.
b. Debit Unearned Rental Revenue, $12,000; credit Rental Revenue, $12,000.
c. Debit Cash, $12,000; credit Rental Revenue, $12,000.
d. Debit Unearned Rental Revenue, $2,000; credit Rental Revenue, $2,000.
Jill Crown earned a salary of $500 for the last week of October. She will be paid on November 1. The adjusting entry for Jill employer October 31 is:
A. Salaries Payable 500
Cash 500
B. No entry is required.
C. Salaries Expense 500
Salary payable 500
D. Salaries Expense 500
Cash 500
The Harris Company purchased a computer for 3,000 on December 1. It is estimated that annual depreciation on the computer will be $600. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
A. Debit Depreciation Expense, $600; credit Accumulated Depreciation, $600.
B. Debit Depreciation Expense, $50; credit Accumulated Depreciation, $50.
c. debit Depreciation Expense, $2,400; credit Accumulated Depreciation, $2,400.
d. Debit Office Equipment, $3,000; credit Accumulated Depreciation, $3,000.
