ABC Collects Rents from Several Properties

question 23

Multiple Choice

ABC collects rents from several properties. Prior to recording adjusting entries, assume the rent income account has a credit balance of $8000. Two adjustments are to be made at the end of the financial year (1) an accrual for accrued rent income of $600 (2) the unearned rent income account is to be decreased by $200. After processing these adjusting entries the amount of rent income to be shown in the income statement is:

• A) $8800.
• B) $8400.
• C) $7600.
• D) $7200.

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Definitions:

Personal Satisfaction

A state or feeling of contentment and fulfillment that arises from achieving or realizing one's desires or goals.

Statute of Limitations

Laws setting the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Nonbreaching Party

The party in a contract who has not violated the agreement terms and is often entitled to remedies for the breach.

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Conditioned on performance describes a contractual clause stating certain obligations that must be met or actions that must be performed for the contract to remain valid.