1. A corporation rents a building for use in its operations. Rent is $5,000 per month, with each month's payment being due on or before the first day of the applicable month. On August 29, 20x2, the corporation pays $5,000 to the landlord to cover rent for the month of September, 20x2. Assume that the corporation uses the balance sheet method to record advance payment of rent. To record the payment, the corporation should .... Debit Rent Expense for $5,000 B Debit Retained Earnings for 5,000 Debit Rent Income for $5,000 D Debit Cash for $5,000 E None of the above 2. On April 27, 20x5, a corporation pays a $900 insurance policy premium for fire and casualty coverage for the period May 1, 20x5 through April 30, 20x6. Assume that the company uses the income statement method to record prepayments of insurance premiums. To record the payment, the corporation should .... A Credit Insurance Expense for $900 B Credit Prepaid Insurance for $900 Credit Retained Earnings for $900 D Debit Prepaid Insurance for $900 E None of the above 3. Office expense Travel expense Assume that a corporation maintains a $1,000 petty cash fund. On February 11, 20x7, the corporation replenishes the petty cash fund. At the time the fund is replenished, the petty cash lock-box contains cash of $50 and petty cash tickets as set out below. $ 420 Postage expense 300 100 Miscellaneous expense 120 To replenish the petty cash fund, the corporation may ... A. Debit Cash Short for $10 B. Credit Petty Cash for $940 C. Debit Petty Cash for $940 D Debit Cash Over for $10 E. None of the above 4. A corporation is reconciling its checking account for the month of March, 20x1. As of March 31, 20x1, the bank statement indicates balance of $750 and the general ledger Cash account balance is $800. The corporation determines that it had one deposit in transit for $100 and four outstanding checks totaling $90. The corporation also discovers that the bank has issued a March credit memo for interest income of $5 and a March debit memo for bank service charges of $45. What is the correct reconciled bank balance as of March 31, 20x1? A. $720 B. 760 C. 770 D 710 E. None of the above 5. On September 24, 20x3, a corporation establishes a petty cash fund by writing and immediately cashing a $500 check and placing the $500 in the petty cash lock box. To record the event, the corporation should ... A. Debit Petty Cash Expense for $500 B. Debit Petty Cash for $500 C. Credit Petty Cash for $500 D. Debit Cash for $500 E. None of the above