PPW Co Leased a Portion of Its Store to Another Company

question 124

Multiple Choice

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

Excitement Phase

The initial stage of the human sexual response cycle, characterized by increased heart rate, muscle tension, and blood flow to the genital areas.

Sexual Interest

The level of attraction or arousal a person feels towards others, which can vary across a spectrum of preferences.

Testosterone

A steroid hormone prevalent in males that is responsible for the development of male sexual characteristics, but also found in females and plays a vital role in health and well-being.

Muscular Contractions

The activation of tension-generating sites within muscle fibers, essential for movement, posture, and circulation.