McCloud Realty Received a Cheque for $21,000 on July 1

question 71

Multiple Choice

McCloud Realty received a cheque for $21,000 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Revenue was credited for the full $21,000. Financial statements will be prepared on July 31. McCloud Realty should make the following adjusting entry on July 31:

• A) debit Unearned Revenue, $3,500; credit Rent Revenue, $3,500.
• B) debit Rent Revenue, $3,500; credit Unearned Revenue, $3,500.
• C) debit Unearned Revenue, $21,000; credit Rent Revenue, $21,000.
• D) debit Cash, $3,500; credit Rent Revenue, $3,500.

Identify conditions under which countries should specialize in the production of certain goods and engage in trade.

Calculate opportunity cost and understand its role in determining comparative advantage.

Recognize the benefits of specialization and trade for countries involved.

Analyze scenarios to determine which country has a comparative or absolute advantage in the production of specific goods.