• I. (1 point) Which of the following situations results in unearned revenue?
• A) Collected $100 from a customer who purchased goods a month ago
• B) Received an order from a customer who will purchase and pay for goods in two weeks
• C) Sold goods for $100 today with payment due from the customer in 30 days
• D) Received $100 cash from a customer for an order of goods to be shipped next month
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    • II. (1 point) On December 16, 2015, Brain Company received $3,600 from SD Company for rent of an office owned by Brain Company. The payment covers the period from December 16, 2015 through February 15, 2016. Brain Company recorded this as Unearned Rent when it was received on December 16. The adjusting entry on December 31 would include a:
    • A) credit to Rent Revenue of $900.
    • B) credit to Unearned Rent Revenue of $900.
    • C) debit to Rent Revenue of $1,800.
    • D) debit to Unearned Rent Revenue of $1,800.
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    • III. (2 points) The following data were taken from the records of Tiantian Appliance, Incorporated, at December 31, 2019 (¥ in renminbi) Sales revenue 14,092,000 Administrative expense 1,084,000 Selling (distribution) expense 1,951,200 Income tax rate 25% Gross profit 6,287,200 Shares of stock outstanding 2,000
    • Question: Prepare a complete multiple-step income statement for the company. (hint: gross profit = sales revenue – cost of goods sold).
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    • IV. (6 points) The following information was provided by the records of Sky Castle (a corporation) at the end of the annual fiscal period, December 31, 2017: a. Rent revenue collected in cash during 2017 for occupancy in 2017 $425,000 b. Rent revenue earned for occupancy in December 2017; not collected until 2018 13,300 c. In December 2017, collected rent revenue in advance for January 2018 10,000 Salaries d. Cash payment in January 2017 to employees for work in December 2016 (accrued in 2016) 3,300 e. Salaries incurred and paid during 2017 51,500 f. Salaries earned by employees during December 2017 that will be paid in January 2018 2,500 g. Cash advances to employees in December 2017 for salaries that will be earned in January 2018 1,250 Supplies h. Maintenance supplies on January 1, 2017 (balance on hand) 2,500 i. Maintenance supplies purchased for cash during 2017 6,600 j. Maintenance supplies counted on December 31, 2017 1,400
    • Question: 1. Prepare the journal entries for transactions (a) – (j). 2. For each of the following accounts, compute the ending balance to be reported in 2017 and choose the statement on which the account will be reported. (Hint: Use T-accounts to determine balances) Account 2017 Balance Financial Statement 1. Rent revenue 2. Salary expense 3. Maintenance supplies expense 4. Rent receivable 5. Receivables from employees 6. Maintenance supplies 7. Unearned rent revenue 8. Salaries payable

Answer rating: 100% (QA)

QUESTION I The correct answer is C Sold goods for 100 today with payment due from the customer in 30 days Unearned revenue refers to the situation where a company receives payment from a customer befo... View the full answer