Question 1) On November 1, 20X3, your calendar year company receives $40,000 for space it is subletting for 5 months (November 1, 20X3 through March 31, 20X4). The $40,000 was recorded as Rent Revenue. On December 31, 20X3, you discover the following adjusting entry: Rent Revenue 24,000 Unearned Rent 24,000 To correct this error you must:

debit Unearned Rent for $8,000; credit Rent Revenue for $8,000
		do nothing; the adjusting entry is correct
		debit Rent Revenue for $16,000; credit Unearned Rent for $16,000
		debit Unearned Rent for $16,000; credit Rent Revenue for $16,000
		debit Rent Revenue for $8,000; credit Unearned Rent for $8,000

Question 2) On March 31, 20X8, your calendar year company takes out a 3-year insurance policy with a premium of $5,000 per year. The entire $15,000 is paid in advance on March 31, 20X8 and is recorded as prepaid insurance. On December 31, 20X8, you discover that the adjusting entry debited Insurance Expense for $5,000 and credited Prepaid Insurance for $5,000. Your correcting journal entry will:

		not be necessary because the original adjusting entry was correct
		debit Prepaid Insurance for $1,250; credit Insurance Expense for $1,250
		debit Prepaid Insurance for $5,000; credit Insurance Expense for $5,000
		debit Insurance Expense for $1,250; credit Prepaid Insurance for $1,250
		debit Prepaid Insurance for $3,750; credit Insurance Expense for $3,750
		debit Insurance Expense for $3,750; credit Prepaid Insurance for $3,750

Question 3) Which of the following is a deferral error?

		Debiting Accounts Payable and crediting Revenue when billing a customer
		Failure to book revenue earned but not received as of year end
		Failure to calculate and record interest expense owed on a note payable
		Failure to adjust Unearned Revenue at year end

Please make sure that your given answers are correct and please answer all three questions