5 A tenant rented space in your company's office bullding on November 1 at $1,800 per month, paying six months' rent in advance. The bookkeeper recognized a current liability of $10,800. The December 31, year-end adjusting entry would be which of the following? A) Unearned Rent, debit, $7,200; Rent Revenue, credit, $7,200 B) Rent Revenue, debit, $3,600, Uneamed Rent, credit, $3,600 C) Unearned Rent, debit, $3,600; Rent Revenue, credit, $3,600 D) Cash, debit, $10,800; Rent Rev., Credit, $7,200; Uneamed Rent, credit, $3,600 E) None of the above Assuming all of the accounts have normal balances, what is the total of the trial balance? A) $532,000 B) $508,000 C) $488,000 D) $510,000 E) Does not balance 7 The notion that the life of a business is divisible into time periods of equal length is known as which of the following? A) Continuing-concern principle B) Monetary unit principle C) Recognition principle D) Time-period principle E) Business entity principle 8 An NBA basketball team sells season tickets worth $40 million before the basketball season starts late in the year. Assume this $40 million is debited to Cash and credited to Uneamed Ticket Revenue. By the end of the year, 15% of the games have been played. What adjusting journal entry should be made at the end of the year? A) Unearned Ticket Revenue, debit, $6 million; Cash, credit, $6 million B) Ticket Revenue, debit, $6 million; Uneamed Ticket Revenue, credit, $6 million C) Unearned Ticket Revenue, debit, $6 million; Ticket Revenue, credit, $6 million D) Ticket Revenue, debit, $6 million; Cash, credit, $6 million E) None of the above