Leyland Realty Company Received a Check for $18,000 on July

question 131

Multiple Choice

Leyland Realty Company received a check for $18,000 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client.Unearned Rent Revenue was credited for the full $18,000.Financial statements will be prepared on July 31.Leyland Realty should make the following adjusting entry on July 31:

• A)debit Unearned Rent Revenue, $3,000; credit Rent Revenue, $3,000.
• B)debit Rent Revenue, $3,000; credit Unearned Rent Revenue, $3,000.
• C)debit Unearned Rent Revenue, $18,000; credit Rent Revenue, $18,000.
• D)debit Cash, $18,000; credit Rent Revenue, $18,000.

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Definitions:

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources, emphasizing transparency, and consistency in the procedures.

Job Evaluation

A systematic process of determining the relative worth of jobs to establish which jobs should be paid more than others within an organization.

Employees' Perceptions

The way employees view or interpret actions, policies, and the environment of their workplace.

Nonexempt

Refers to employees who are covered by the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).