Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What

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Question:

Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What effect does this transaction have on the accounts under the accrual basis of accounting?

a. Net increase in assets and liabilities of $55,000

b. Net increase in assets of $75,000 and a net decrease in liabilities of $30,000

c. Net increase in assets of $35,000 and a net increase in liabilities of $35,000

d. Net increase in assets of $55,000 and a net decrease in liabilities of $35,000

The unearned rent account has a balance of $60,000. If $4,000 of the $60,000 is unearned at the end of the accounting period, the amount of the adjusting entry is:

a. $56,000.

b. $60,000.

c. $64,000.

d. $4,000