CUMULATIVE REVIEW PROBLEM: CHAPTER 3 The purpose of this problem is to provide an opportunity to review both new concepts in the current chapter and major concepts in previous chapters. This cumulative review should assist you in integrating accounting concepts and preparing for exams. 1. On December 1, 2011, six months' rent income totaling $9,000 was received on an office rental The receipt of cash was originally recorded by a credit to Unearned Rental Revenue (a real account). The required adjusting entry at December 31, 2011 would require a Credit to (Account Title) For $ (Amount) 2. The unadjust adiusted trial balance amount for Insurance Expense la temporary acco 31 2011, was $3,600. The Insurance policy was purchased on August surance Expense (a temporary account) on Decem- ative for 12 months starting on that date. The required adjusting entry on was purchased on August 1, 2011 and is 2011 would require a quired adjusting entry on December 31, a Credit to (Account Title) For $ _ (Amount) On May 20, 2011 Sue Company completes consulting services for a client and bills the client on account for $30,000. On June 5, 2011, the client makes a partial payment of $20,000 to sue Company for the amount due on account. On June 5, 2011, Sue Company should credit (Account Title) For $ (Amount) On May 1, 2010 Jim Company purchases for cash a new delivery truck to be used in the business for $38,000. The truck has an estimated residual value of $2.000 and an expected me of 4 years. On December 31, 2011, the adjusting entry to record depreciation for the year 2011 would require a Credit to (Account Title) For $ (Amount) 5. If Frank Corporation sells 100,000 shares of its new $1 par value common stock to investors for $1 per share on June 1, 2011, the required journal entry would require: Debit to (Account Title) Credit to __ (Account Title) 6. Total revenues for Alice Company over a three year period (in millions) were: 2010 $ 56,000 2011 $ 67,200 2012 $ 89,600 The percentage increase in revenues from 2010 to 2011 is The percentage increase in revenues from 2010 to 2012 is