Reference no: EM132485997

Question 1: Which of these transactions would produce $10,000 of revenue in December? (check all that apply) "there's more than one answer"

Option 1: BOC Realty leases space to a tenant for December and January. The tenant pre-paid the $20,000 rent for the two months in November.

Option 2: BOC Realty leases space to a tenant for December and sends a bill for the $10,000 rent to be paid in January.

Option 3: BOC Bank is owed $10,000 of interest on a loan for December and receives the payment in January.

Option 4: BOC Realty leases space to a tenant for December and the tenant pays the $10,000 rent in cash in December.

Option 5: BOC Bank receives a check for $10,000 in December for November's interest amount.

Question 2: Which of these transactions would produce $10,000 of expenses in December? (check all that apply) "there's more than one answer"

Option 1: BOC pays $10,000 in cash dividends in December.

Option 2: BOC hires a new COO in December to start work in January. The COO will be paid $10,000 per month.

Option 3: BOC pays its auditor $12,000 in December for all of the work the auditor performed during the year.

Option 4: BOC pays its advertising agency $10,000 in December for ads that ran in December.

Option 5: BOC receives a $10,000 invoice from its lawyers for services performed in December. The bill is due in January.

Question 3: Which journal entry reflects the following transaction?:

Option 1: BOC receives $2,000 cash from a customer, of which $1,000 was for goods delivered now and $1,000 was a deposit on custom goods that will be delivered next month.

Dr. Revenue 2,000
Cr. Cash 2,000

Dr. Cash 2,000
Cr. Revenue 1,000

Cr. Advances from Customers 1,000

Dr. Cash 2,000
Cr. Revenue 2,000

Dr. Cash 2,000
Cr. Inventory 2,000

Dr. Cash 2,000
Cr. Advances from Customers 2,000