1.

Using the following year-end information for Calvins Clothing, calculate the current ratio and acid-test ratio for the business:

Cash	$ 59,140
Short-term investments	15,000
Accounts receivable	60,000
Inventory	290,000
Prepaid expenses	6,520
Accounts payable	109,000
Other current payables	32,200

rev: 07_10_2018_QC_CS-131052

• 2.05 and 1.05

• 2.05 and 0.95

• 3.05 and 0.95

• 3.21 and 1.05

• .33 and 1.05

2.

On October 1, Goodwell Company rented warehouse space to a tenant for $4,100 per month. The tenant paid five months' rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account. The company's annual accounting period ends on December 31. The adjusting entry needed on December 31 is:

• Debit Unearned Rent, $8,200; credit Rent Earned, $8,200.

• Debit Unearned Rent, $12,300; credit Rent Earned, $12,300.

• Debit Unearned Rent, $20,500; credit Rent Earned, $20,500.

• Debit Rent Receivable, $12,300; credit Rent Earned, $12,300.

• Debit Rent Receivable, $20,500; credit Rent Earned, $20,500.