Panda Corporation paid cash of $120,000 on June 1, 2017 for one years rent in advance and recorded the transaction with a debit to Rent Expense. The December 31, 2017 adjusting entry is

		debit Rent Expense and credit Prepaid Rent, $70,000.
		debit Prepaid Rent and credit Cash, $50,000.
		debit Prepaid Rent and credit Rent Expense, $70,000.
		debit Prepaid Rent and credit Rent Expense, $50,000.

Question 17

Johnson Products purchased a machine for $65,000 on Jan. 1, 2017. The company intends to depreciate it over 4 years using the double-declining balance method. Salvage value is $5,000. Depreciation for 2017 is

		$8,125
		$32,500
		$30,000
		$15,000