Fragmental Co

question 239

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

---

Definitions:

NADH Molecules

Nicotinamide adenine dinucleotide (NAD) plus hydrogen (H), an important coenzyme in the body that plays a key role in the energy production process within cells through redox reactions.

Pyruvate Molecules

Organic compounds that play a pivotal role in energy production pathways, such as glycolysis and the Krebs cycle, within cells.

Acetyl CoA

A central metabolic molecule that signifies the convergence point of several metabolic pathways, crucial in energy production.

Chemiosmosis

Chemiosmosis is the movement of ions across a selectively permeable membrane, down their electrochemical gradient, fundamental in processes like ATP synthesis in cells.