Fragmental Co

question 75

Multiple Choice

Fragmental Co.leased a portion of its store to another company for eight months beginning on October 1,at a monthly rate of $800.Fragmental collected the entire $6,400 cash on October 1 and recorded it as unearned revenue.Assuming adjusting entries are only made at year-end,the adjusting entry made by Fragmental Co.on December 31 would be:

• A)A debit to Rent Revenue and a credit to Cash for $2,400.
• B)A debit to Rent Revenue and a credit to Unearned Rent for $2,400.
• C)A debit to Cash and a credit to Rent Revenue for $6,400.
• D)A debit to Unearned Rent and a credit to Rent Revenue for $2,400.
• E)A debit to Unearned Rent and a credit to Rent Revenue for $4,000.

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Definitions:

Robin Leidner

A sociologist known for her work on labor processes, service work, and the ways in which jobs are structured and experienced.

Rationalization

The process of offering a logical, reasonable explanation or justification for behaviors or decisions, often as a way of making them appear more acceptable or appropriate.

Efficient

Efficient describes achieving maximum productivity with minimum wasted effort or expense, often relating to the optimal use of resources to obtain a desired outcome.

Bureaucratic Organization

A structured administrative system governing any large institution, characterized by fixed rules, a hierarchy of authority, and a detailed division of labor.