Sunrise Inc. received a cheque for $$24,000$ on January $1$ which represents a $3-$

month advance payment of rent $($January to March$)$ on a building it rents to a client.

Deferred Rent Revenue was credited for the full $$24,000.$ Financial statements are

prepared monthly. Sunrise Inc. should make the following adjusting entry on

January $31$ :

a$)$ Debit Deferred Rent Revenue $$24,000$ and credit Rent Revenue $$24,000.$

b$)$ Debit Rent Revenue $$24,000$ and credit Deferred Rent Revenue $$24,000.$

c$)$ Debit Rent Revenue $$4,000$ and credit Deferred Rent Revenue, $$4,000.$

d$)$ Debit Deferred Rent Revenue $$8,000$ and credit Rent Revenue $$8,000.$

e$)$ Debit Deferred Rent Revenue $$4,000$ and credit Rent Revenue $$4,000.$ What is the numerical impact on cash and net earnings of the following scenario:Sunrise Inc. received a cheque for $$24,000$ on January $1$ which represents a $3-$

month advance payment of rent $($January to March$)$ on a building it rents to a client.

Deferred Rent Revenue was credited for the full $$24,000.$ Financial statements are

prepared monthly. Sunrise Inc. should make the following adjusting entry on

January $31$ :

a$)$ Debit Deferred Rent Revenue $$24,000$ and credit Rent Revenue $$24,000.$

b$)$ Debit Rent Revenue $$24,000$ and credit Deferred Rent Revenue $$24,000.$

c$)$ Debit Rent Revenue $$4,000$ and credit Deferred Rent Revenue, $$4,000.$

d$)$ Debit Deferred Rent Revenue $$8,000$ and credit Rent Revenue $$8,000.$

e$)$ Debit Deferred Rent Revenue $$4,000$ and credit Rent Revenue $$4,000.$

Services worth $$38,500$ were provided to customers during the period, of which

$$28,300$ of cash remained uncollected by the end of the period.

a$)$ Impact on cash: $0$ ; impact on net earnings: $$38,500$ increase

b$)$ Impact on cash: $0$ ; impact on net earnings: $$28,300$ increase

c$)$ Impact on cash: $$10,200$ increase; impact on net earnings: $$38,500$ increase

d$)$ Impact on cash: $$38,500$ increase; impact on net earnings: $$28,300$ increase

e$)$ Impact on cash: $$38,500$ increase; impact on net earnings: $$10,200$ increase