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for grading. 1. Sanborn Company rents space to a tenant for $2,200 per month. The tenant currently owes rent for November and December. The tenant

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for grading. 1. Sanborn Company rents space to a tenant for $2,200 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. Assuming adjustments are only made at year-end, the adjusting entry needed on December 31 is: A) Debit Rent Receivable, $6,600; credit Rent Earned, $6,600. B) Debit Unearned Rent, $4,400; credit Rent Earned, $4,400. C) Debit Unearned Rent, $2,200; credit Rent Earned, $2,200. D) Debit Rent Receivable, $4,400; credit Rent Earned, $4,400. E) Debit Rent Receivable, $2,200; credit Rent Earned, $2,200. 2. Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is: A) Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400. B) Debit Salaries Expense, $3,600; credit Salaries Payable, $3,600. C) Debit Salaries Expense, $9,000; credit Salaries Payable, $9,000. D) Debit Salaries Payable, $5,400; credit Salaries Expense, $5,400. E) Debit Salaries Expense, $5,400; credit Cash, $5,400. 3. On January 1, Imlay Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an estimated salvage value of $5,000. Imlay uses the straight-line depreciation method to allocate costs, and only prepares adjustments at year-end. The adjusting entry needed on December 31 of the first year is: A) Debit Depreciation Expense, $9,000; credit Accumulated Depreciation, $9,000. B) Debit Depreciation Expense, $18,000; credit Accumulated Depreciation, $18,000. C) Debit Depreciation Expense, $90,000; credit Accumulated Depreciation, $90,000. D) Debit Depreciation Expense, $18,000; credit Equipment, $18,000. E) Debit Depreciation Expense, $9,000; credit Equipment, $9,000

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