Question
In: Accounting
Fragmental Co. leased a portion of its store to another companyfor eight months beginning on...
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,025. Fragmental collected the entire $8,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:
A.) A debit to Unearned Rent and a credit to Rent Revenue for $5,125.
B.) A debit to Rent Revenue and a credit to Cash for $3,075.
C) A debit to Cash and a credit to Rent Revenue for $8,200.
D.) A debit to Rent Revenue and a credit to Unearned Rent for $3,075.
E.) A debit to Unearned Rent and a credit to Rent Revenue for $3,075.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Fragmental Co. leased a portion of its store to another company for eight months beginning on...
Fragmental Co. leased a portion of its store to another company
for eight months beginning on October 1, at a monthly rate of
$1,150. Fragmental collected the entire $9,200 cash on October 1
and recorded it as unearned revenue. Assuming adjusting entries are
only made at year-end, the adjusting entry made by Fragmental Co.
on December 31 would be:
Multiple Choice
A debit to Rent Revenue and a credit to Cash for $3,450.
A debit to Rent Revenue and a...
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The company finance manager is required to evaluate how the two
alternative financing plans will affect the earnings potential of
the company. Total financing required is $20 million. The company
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Franklin Co. leased its manufactured equipment to Parker Inc. for a 4-year term. Franklin Co. reported...
Franklin Co. leased its manufactured equipment to Parker Inc.
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The transfer of a tenant's ENTIRE interest in leased property to another is known as: a....
The transfer of a tenant's ENTIRE interest in leased property to
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a.
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b.
remain secondarily liable
c.
no longer be liable since the check was certified
d.
none of the above
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A debt of RM900 due in five months and another of RM1000 due in ten months...
A debt of RM900 due in five months and another of RM1000 due in
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to the nearest whole dollar; don’t include the $ sign or
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On January 1, Year 6, Magnus Co. leased a machine to Fisher Co. The machine was...
On January 1, Year 6, Magnus Co. leased a machine to Fisher Co.
The machine was acquired by Magnus on January 1, Year 1, for
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On January 1, Year 6, Magnus Co. leased a machine to Fisher Co. The machine was...
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The machine was acquired by Magnus on January 1, Year 1, for
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straight-line method. The lease term is 10 years, and the present
value of the lease payments to be made over the lease term was
$90,000. Annual equal lease payments of $14,647 are payable...
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