Question

QUESTION 18

1. Use the following information to answer the next Two questions: (Questions 1 of 2)

   On November 1, 2019, Kathie Company received five months' rent for office space for November 2019 through March 2010 totaling $50,000. The payment was originally recorded by a credit to a real account. Kathie’s required adjusting entry at December 31, 2019 would include:

   	A.	a debit to Rent Revenue.
   	B.	a debit to Unearned Rent Revenue.
   	C.	a credit to Rent Expense.
   	D.	none of the above.
   	E.	a credit to Unearned Rent Revenue.

2 points   

QUESTION 19

1. Use the following information to answer the next Two questions: (Questions 2 of 2)

   On November 1, 2019, Kathie Company received five months' rent for office space for November 2019 through March 2010 totaling $50,000.  Thepayment was originally recorded by a credit to a real account.

   The amount of the adjusting entry required at December 31, 2019 would be:

   	A.	none of the above
   	B.	$30,000.
   	C.	$10,000.
   	D.	$20,000.
   	E.	$40,000.

Answer 1

Working as follows:

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18.

The correct option is [B] i.e Debit to Unearned Rent revenue

19.

The correct option is [D] $20,000

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