25) ABC Company prepaid eight months of office rent totaling $9000 on October 1, 2019. The rent period begins on October 1. Assuming ABC records deferred expenses using the alternative treatment, what would be the adjusting entry recorded on December 31, 2019?

25) ______

A) Debit Rent Expense and credit Prepaid Rent for $3375

B) Debit Prepaid Rent and credit Rent Expense for $5400

C) Debit Prepaid Rent and credit Rent Expense for $5625

D) No entry is needed since Rent Expense was recorded on October 1, 2019

26) On September 1, ABC Company contracted to provide monthly maintenance services for the next five months at a rate of $2700 per month. The client paid ABC $13,500 on September 1. Assuming ABC records deferred revenues using the alternative treatment, what would be the entry on September 1?

26) ______

A) Debit Cash and credit Unearned Revenue for $13,500

B) Debit Cash and credit Service Revenue for $13,500

C) Debit Prepaid Maintenance and credit Cash for $13,500

D) No entry is needed until the services are performed

27) On September 1, ABC Company contracted to provide monthly maintenance services for the next ten months at a rate of $2400 per month. The client paid ABC $24,000 on September 1. The maintenance services began on that date. Assuming BMCC records deferred revenues using the alternative treatment, what would be the adjusting entry recorded on December 31?

27) ______

A) Debit Service Revenue and credit Unearned Revenue for $24,000

B) No entry is needed since revenue was recorded on September 1.

C) Debit Unearned Revenue and credit Service Revenue for $9600

D) Debit Service Revenue and credit Unearned Revenue for $14,400

28) The balances of select accounts of ABC Company as of December 31, 2018 are given below:

	Debit	Credit
Building	$140,000
Cash	9000
Office Supplies	1200
Furniture	6000
Prepaid Insurance	550
Accumulated DepreciationFurniture		$4000
Land	31,000
Accumulated DepreciationBuilding		4000
Accounts Receivable	2200

Determine the amount of total current assets reported on the balance sheet at December 31, 2018.

28) ______

A) $17,200 B) $10,750 C) $10,200 D) $12,950