A $4,500 Payment for Rent Expense Was Incorrectly Journalized and Posted

question 34

Multiple Choice

A $4,500 payment for Rent Expense was incorrectly journalized and posted as a debit to Rent Expense for $5,400 and a credit to Cash for $5,400. The correcting entry, using the one-step method, would include a

• A) debit to Cash for $900.
• B) credit to Rent Expense for $4,500.
• C) credit to Rent Expense for $5,400.
• D) credit to Cash for $90.

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Definitions:

Summary Judgment

A legal determination made by a court without a full trial when no material facts are in dispute, allowing for a decision on the legal issues.

Exclusive Jurisdiction

A legal authority wherein only one particular court has the power to adjudicate a case.

Admiralty Cases

Legal cases that pertain to maritime issues, including shipping, navigation, waters, and commerce on the sea.

Bankruptcy Cases

Legal proceedings involving individuals or businesses that are unable to repay their outstanding debts, seeking relief through the court.