On September 1, Katrina Real Estate, Inc. received $9,600 in advance from one of its tenants for rent for the next 12 months. Assuming Katrina Real Estate closes its books on December 31, what adjusting entry will Katrina Real Estate make with respect to this transaction?

Select one:

a.

Unearned Revenue	3,200
Rent Revenue		3,200

b.

Prepaid Rent	3,200
Unearned Revenue		3,200

c.

Unearned Revenue	3,200
Prepaid Rent		3,200

d.

Rent Expense	3,200
Prepaid Rent		3,200

Turner Inc. received a machine with a fair value of $55,000 and a building with a fair value of $245,000 in exchange for 4,500 shares of $40 par value common stock and $50,000 cash. The entry to record this transaction would include.

Select one:

a. Credit to Retained earnings for $70,000

b. Credit to Additional Paid in Capital for $250,000

c. Credit to Common Stock for $250,000

d. Credit to Additional Paid in Capital for $70,000