Marigold Corp. received a check for $14040 on July 1, which represents a 6-month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $14040. Financial statements will be prepared on July 31. Marigold's should make the following adjusting entry on July 31: Debit Unearned Rent Revenue, $28260; Credit Rent Revenue, $28260.
Debit Cash, $28260; Credit Rent Revenue, $28260.
Debit Unearned Rent Revenue, $4710; Credit Rent Revenue, $4710.
Debit Rent Revenue, $4710; Credit Unearned Rent Revenue, $4710.
1. If an adjustment is needed for unearned revenues, the:.
a. liability and related revenue are overstated before adjustment.
b. liability and related revenue are understated before adjustment.
c. liability is overstated and the related revenue is understated before adjustment.
d. liability is understated and the related revenue is overstated before adjustment.
2. As prepaid expenses expire with the passage of time, the correct adjusting entry will be a:.
a. debit to an expense account and a credit to an asset account.
b. debit to an asset account and a credit to an expense account.
c. debit to an asset account and a credit to an asset account.
d. debit to an expense account and a credit to an expense account.
3. What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18520, and unexpired amounts per analysis of policies of $6050?
A. Debit Prepaid Insurance, $12470; Credit Insurance Expense, $12470.
B. Debit Insurance Expense, $6050; Credit Prepaid Insurance, $6050.
C. Debit Insurance Expense, $18520; Credit Prepaid Insurance, $18520.
D. Debit Insurance Expense, $12470; Credit Prepaid Insurance, $12470.