A company collects payment in advance, debitingCash and crediting Revenue. At year end, an adjusting entry:
a. is not required if all the advance payment has been earned
b. may need to debit Revenue
c. may need to debit Unearned Revenue
d. both a and b
2.On September 1, your calendar year company rents a machine to another firm for $24,000 a year. As of December 31, $17,000 has been received andrecorded in Rent Revenue. What adjusting entry do you record at year end?
a.Rent Revenue9,000
Unearned Rent Revenue9,000
b.Rent Revenue8,000
Unearned Rent Revenue8,000
c.Rent Revenue9,000
Accounts Receivable9,000
d.Unearned Rent Revenue8,000
Rent Revenue8,000
3.On September 1, your calendar year company rents a machine to another firm for $24,000 a year. If, at year end, $15,000 has been received and recorded in Rent Revenue, what adjusting entry do you record at year end?
a.Rent Revenue8,000
Unearned RentRevenue8,000
b.Unearned Rent Revenue7,000
Rent Revenue7,000
c.Unearned Rent Revenue8,000
Rent Revenue8,000
d.Rent Revenue7,000
Unearned RentRevenue7,000
4.Your company receives a $40,000 advance for a $125,000 painting job and you credit Painting Revenue. If, at year end, 14% of the job has been completed, what adjusting entry will you record?
a.Painting Revenue22,500
Cash22,500
b.Unearned Painting Revenue22,500
Cash22,500
c.Painting Revenue22,500
Unearned Painting Revenue22,500
d.Unearned Painting Revenue22,500
Painting Revenue22,500
