Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 4.6MC
Sampson Manufacturing Company (SMC) has an empty warehouse that it rents out to a local beer distributor for a monthly rental fee of $6,000. Terms of the rental agreement include a 10-day payment grace period and an additional $200 monthly utility expense, necessary to maintain the beer distributor’s products at the proper temperature, paid by SMC. Assuming that SMC records journal entries on a monthly basis and that it receives the December monthly rent payment on January 9, what is the
a. Rent Receivable | 6,000 | |
Rent Revenue | 6,000 | |
b. Rent Receivable | 5,800 | |
Utilities Expense | 200 | |
Rent Revenue | 6 ,000 | |
c. Rent Receivable | 6,000 | |
Utilities Expense | 200 | |
Rent Revenue | 6,000 | |
Utilities Payable | 200 | |
d. No journal entry necessary. |
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Chapter 4 Solutions
Intermediate Accounting (2nd Edition)
Ch. 4 - Prob. 4.1QCh. 4 - ShoeBuy uses reversing entries for events such as...Ch. 4 - What is equity? What are the three components of...Ch. 4 - Prob. 4.4QCh. 4 - Will all transactions have a dual effect on the...Ch. 4 - Prob. 4.6QCh. 4 - What is meant by the term normal balance? Provide...Ch. 4 - Why is the general journal referred to as the book...Ch. 4 - Are account balances found in the general ledger?...Ch. 4 - What is the purpose of an unadjusted trial...
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