Lang Leased a Portion of Its Store to Pang for 12

question 92

Multiple Choice

Lang leased a portion of its store to Pang for 12 months beginning on November 1, at a monthly rate of $400. Pang paid the entire $4,800 on November 1, which Langrecorded as unearned revenue. The journal entry made by Lang at year-end, December31, would include:

• A)A debit to Rent Earned for $400.
• B)A debit to Cash for $800.
• C)A credit to Unearned Rent for $400.
• D)A credit to Rent Earned for $800.
• E)A debit to Unearned Rent for $4,800.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit changes with the level of production.

Rising

Often refers to the increase in value, quantity, or level of something over time, frequently used in the context of prices, temperatures, or other measurable factors.

Average Cost Curve

A graph that illustrates the cost per unit of output by dividing the total cost by the quantity of output produced, typically showing how costs fluctuate with changes in scale.

Marginal Cost Curve

A graph that shows the increase in cost incurred by producing one more unit of a good or service.