PPW Co Leased a Portion of Its Store to Another Company

question 124

Multiple Choice

PPW Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co. recorded as unearned revenue. The journal entry made by PPW Co. at year-end on December 31 would include:

• A) A debit to Rent Earned for $2,400.
• B) A credit to Unearned Rent for $2,400.
• C) A debit to Cash for $6,400.
• D) A credit to Rent Earned for $2,400.
• E) A debit to Unearned Rent for $4,000.

---

Definitions:

Traditional Recitation Scripts

Predefined speeches or texts that are memorized and recited in traditional ceremonies or educational settings.

Problem-oriented Approaches

Methods of addressing and solving problems by identifying the issue, developing potential solutions, and systematically tackling the problem through logical steps.

Reading Comprehension

The ability to understand, interpret, and derive meaning from written language.

Healthier Eating Habits

Patterns of consumption that focus on nutrient-rich foods and balanced diets to improve or maintain overall health.