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:

National Epidemic

A widespread occurrence of an infectious disease in a community at a particular time that affects a large number of people within a country.

Oxycodone

A prescription opioid pain medication used to treat moderate to severe pain.

Medical Reasons

Justifications or explanations for actions, decisions, or treatments based on health or physiological needs.

Cannabis

A psychoactive drug derived from the Cannabis plant, used for medical or recreational purposes.