Gi Gi's Dance Studio Provided $150 of Dance Instruction and Rented

question 127

Multiple Choice

Gi Gi's Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100.The client paid immediately.Identify the general journal entry below that Gi Gi's will make to record the transaction.

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Rental Revenue } & 100 & \\
• \hline \text { Instruction Revenue } & 150 & \\
• \hline \text { Cash } & & 250 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 250 & \\
• \hline \text { Rental Revenue } & & 100 \\
• \hline \text { Instruction Revenue } & & 150 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 250 & \\
• \hline \text { Rental Revenue } & & 100 \\
• \hline \text { Instruction Revenue } & & 150 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Receivable } & 250 & \\
• \hline \text { Rental Revenue } & & 100 \\
• \hline \text { Instruction Revenue } & & 150 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Unearned Revenue } & 250 & \\
• \hline \text { Rental Revenue } & & 100 \\
• \hline \text { Instruction Revenue } & & 150 \\
• \hline
• \end{array}\]

---

Definitions:

Market Economy

An economic system where supply and demand from consumers and businesses dictate the production and pricing of goods and services.

Supply and Demand

Fundamental economic model based on the idea that the price and quantity of a good or service is determined by the availability (supply) and desire (demand) of that good or service.

Rationing Mechanism

A system used to allocate scarce goods and services using criteria other than price.

Surplus

An excess of supply over demand, resulting in an accumulation of unsold products or unused resources.