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Green Realty Company received a check for $ 2 4 , 0 0 0 on July 1 which represents a 6 month advance payment of

Green Realty Company received a check for $24,000 on July 1 which represents a 6 month
advance payment of rent on a building it rents to a client. Unearned Rent Revenue was
credited for the full $24,000. Financial statements will be prepared on July 31. Green
Realty should make the following adjusting entry on July 31 :
a. debit Unearned Rent Revenue, $4,000; credit Rent Revenue, $4,000.
b. debit Rent Revenue, $4,000; credit Unearned Rent Revenue, $4,000.
c. debit Unearned Rent Revenue, $24,000; credit Rent Revenue, $24,000.
d. debit Cash, $24,000; credit Rent Revenue, $24,000.
Closing Entries:
The following information is from the Income Statement of the Campus Laundry Service:
Revenues
Service Revenue
$8,500
Expenses
Salaries and wages expense $2,450
Advertising expense 500
Rent expense 300
Supplies expense 200
Insurance expense 100
Total expenses 3,550
Net Income $4,950
The entry to close the Service Revenue account includes a:
a. debit to Service Revenue for $8,500.
b. credit to Service Revenue for $8,500.
c. debit to Income Summary for $8,500.
d. debit to Retained Earnings for $8,500.
The closing entry process consists of closing:
a. all asset and liability accounts.
b. out the Retained Earnings account.
c. all permanent accounts.
d. all temporary accounts.
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