Question

QUESTION 10

1. On December 31, 2016, the manager of Jordan Creek Apartments noticed that four tenants had not paid their December rent amounting to $500 each. The manager spoke to each tenant individually and was promised by all 4 that the rent would be paid by January 15, 2017. Assuming the tenants follow through and make their payments by January 15, 2017, Jordan Creek should make the following entry as of December 31, 2016:

Cash (dr) $2,000

     Rental Receivable (cr) $2,000

True

False

1 points   

QUESTION 11

1. Radar Repair Company opened on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:

1. Rick Radar, the sole stockholder, invested $15,000 cash in the business in exchange for common stock.

2. Rick contributed $22,000 of equipment to the business in exchange for common stock.

3. The company provided $8,000 of services to customers on account.

4. The company paid $1,000 cash to rent office space for the month of March and April ($500 per month).

5. The company collected $11,000 cash for repair services, $10,000 representing payment for services provided during March* and $1,000 representing payment for services to be provided in April.

*these are additionalMarch services & are unrelated to transaction #3.

6. The company paid $1,000 for salaries for the month of March.

7. The company purchased $2,000 of supplies. Radar paid $1,000 of cash at the time the supplies were delivered and purchased the remaining supplies on account.

8. The company collected $3,000 from customers as payment on account for services rendered on account in March (transaction #3).

Based on this information, total stockholder's equity reported on the balance sheet at the end of March would be:             

	A.	$53,500
	B.	none of the answer choices provided are correct.
	C.	$50,500
	D.	$37,000
	E.	$54,500

Answer 1

QUESTION 10

False

Correct Entry will be:

Rental Receivable 2,000

Rent Revenue 2,000

The given entry will be recorded on January 15, 2017.

QUESTION 11

Investment (cash)	15,000
Investment (equipment)	22,000
Net income	16,500
Ending stockholders' equity	53,500

Option

A.

$53,500