On September 1,2011,Joy Company Paid $4,000 in Advance for an 8-Month

question 68

Essay

On September 1,2011,Joy Company paid $4,000 in advance for an 8-month rental space covering the period of September,2011 through April,2012.The business makes adjusting entries once a year at year-end.The adjusting entry at December 31,2011 would include a:
A) debit of $4,000 to Prepaid rent expense on December 31, 2011.
B) debit of $2,000 to Prepaid rent expense on December 31, 2011.
C) debit of $2,000 to Rent expense on December 31, 2011.
D) credit of $2,000 to Rent expense on December 31, 2011.

• A) debit of $4,000 to Prepaid rent expense on December 31, 2011.
• B) debit of $2,000 to Prepaid rent expense on December 31, 2011.
• C) debit of $2,000 to Rent expense on December 31, 2011.
• D) credit of $2,000 to Rent expense on December 31, 2011.

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Definitions:

Recycling

The process of converting waste materials into new materials and objects, aiming to reduce consumption of raw materials.

Scrap

Waste materials or discarded objects that can be recycled or reused, often leftover from manufacturing and consumption.

Marginal Abatement Cost

Represents the cost associated with eliminating an additional unit of a negative output, such as pollution.

Emissions Permit

A legal right granted by a government to emit a certain amount of pollutants into the atmosphere; often used in cap and trade programs.