38) Rich Corp. received cash of $6,000 on August 1,2018 for one year's renten and recorded the transaction with a credit to Rent Revenue 2018 adjusting entry is A. Debit Cash and credit Unearned Rent, $3,500. B. Debit Rent Revenue and credit Unearned Rent $2,500 C. Debit Rent Revenue and credit Uneaned Rent, $3,500 D. Debit Unearned Rent and credit Rent Revenue, $2,500 The December 31, 8. Dabit Rent Renearmed Rert 37) Which of the following statements is correct for caloulating the ending balance of retained earnings: Start with beginning retained earnings and then 1. Add or deduct prior period adjustments, net of tax. 2. Add net income and subtract dividends 3. Add or deduct the cumulative effect of a change in accounting principles, net of tax 4. Add comprehensive income tems, net of tex A. Items 1, 2, 3 and 4 B. Items 1, 2 and 3 C. Only items 1 and 2 D. Only item 2 38) Which of the following items require a separate calculation of earnings per share? 1. Income from continuing operations 2. Discontinued Operations. 3. Net Income 4. Unusual Gain and Losses 5. A change in the estimated life of long term assets. A. Items 1, 2,& 3 B. Only item 3 C. Item 2 &4 D. All 5 items. 39) Which of the following equals Operating income on the Income Statement? A. Net sales- cost of goods sold- operating expenses B. Net sales- cost of goods sold- operating expenses+ other revenues- other expenses C. Net sales- cost of goods sold-operating expenses - income taxes D. Net sales- cost of goods sold -operating expenses+ gain on separately reported items- losses on separately reported items. 40) Which of the following require a separate allocation of income taxes? ain or loss on the sale of an operating division that has been discontinued 2. Income from continuing operations 3. Restructuring Costs 4. Error in computing deprecation from a prior year. A. Items 1, 2, and 4, B. Both 1 and 2 C. All items