1.

On December 1, 2021, ABC Co received $16,000 in cash from another company that is renting office space in ABCs building. The payment represented rent for 4 months (December, January, February, and March) and was credited to deferred rent revenue. Prepare the December 31st required adjusting entry for ABC Co.

		dr. Deferred Rent Revenue 4,000 cr. Rent Revenue 4,000
		dr. Rent Revenue 12,000 cr. Deferred Rent Revenue 12,000
		dr. Deferred Rent Revenue 12,000 cr. Rent Revenue 12,000
		dr. Rent Revenue 4,000 cr. Deferred Rent Revenue 4,000

2. XYZ Co ended the year with $15,000 in salaries payable. The income statement reports $100,000 of salaries expense and the cash flow statement reports $110,000 of salaries paid. What was the beginning balance in salaries payable?

XYZ Co ended the year with $15,000 in salaries payable. The income statement reports $100,000 of salaries expense and the cash flow statement reports $110,000 of salaries paid. What was the beginning balance in salaries payable?

		15,000
		10,000
		35,000
		25,000

3.

Moscow Mule maintains their accounting records on the cash basis. For 2020, net cash receipts (receipts minus disbursements) were $10,000. During the year, prepaid rent increased by $600 and deferred revenue decreased by $400. Compute the accrual based net income for 2020.

		9,800
		11,000
		10,200
		9,000