ABC Coleased a Portion of Its Store to Another Company for for Eight

question 261

Multiple Choice

ABC Co.leased a portion of its store to another company for eight months beginning on October 1,2011 at a monthly rate of $800.This other company paid the entire $6,400 cash on October 1,which ABC Co.recorded as unearned revenue.The journal entry made by ABC Co.at year-end on December 31,2011 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

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Definitions:

Conventional Arbitration

A dispute resolution process where a neutral third party makes a binding decision on a conflict between two parties, commonly used in labor disputes.

Corporate Campaigns

Coordinated efforts, typically by unions or activist groups, to pressure a company into changing its policies, practices, or treatment of workers through public, financial, or political means.

Emergency Board

A temporary panel formed, often by a government, to intervene and resolve a deadlock in labor disputes and avoid disruptions such as strikes.

Secondary Boycott

A form of protest in which a union encourages both its members and the general public not to buy the products of a company that is involved in a dispute.