1) Information related to the Berkley Company for the calendar year 2015 follows:

Liabilities, December 31, 2015	$400
Assets, December 31, 2015	700
Dividends distributed during 2015	90
Liabilities, December 31, 2014	250
Assets, December 31, 2014	350

Assuming no capital stock was issued during 2015, the net income earned by the Berkley Company during 2015 was

$110

$200

$260

$290

2) Which of the following is true regarding the general journal?

It helps prevent errors.

It keeps up to date records of all customers and suppliers.

It helps divide up accounting tasks.

It helps control the spending of the organization.

3) The Oliver Construction Company received $18,000 for six months rental income in advance on November 1, 2015, and credited the Rental Revenue account. The required adjusting entry on December 31, 2015, would include a

credit to Rental Revenue for $6,000

credit to Rental Receivable for $12,000

debit to Rental Revenue for $6,000

debit to Rental Revenue for $12,000