Sam Received $8,000 in Advance for Renting Part of His

question 46

Multiple Choice

Sam received $8,000 in advance for renting part of his building. What is the entry to record the receipt?

• A) Debit Cash; credit Rent Expense
• B) Debit Cash; credit Prepaid Rent Expense
• C) Debit Cash; credit Unearned Rent Revenue
• D) Debit Cash; credit Rental Income

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Definitions:

Year-End Adjusting Entry

Entries made in the accounting records at the conclusion of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Vacation Benefits Payable

Liabilities owed to employees for vacation time earned but not yet taken.

Payroll Bank Account

A dedicated bank account used exclusively for processing payroll and related transactions to ensure accurate tracking and management of employee payments.

Payroll Register

A document that records each employee's gross earnings, deductions, and net pay for a specific payroll period.