Reference no: EM132631361

Problem 1: On December 1, 2018, Shamrock Company received $9000 from Destiny, Inc. for rent of an office owned by Shamrock Company. The payment covers the period from December 1, 2018 through February 28, 2019. Shamrock Company recorded this as Deferred Rent Revenue when it was received on December 1. The adjusting entry on December 31 would include a:

Select one:

A. credit to Deferred Rent Revenue of $3000.

B. debit to Rent Revenue of $4500.

C. credit to Rent Revenue of $3000.

D. debit to Deferred Rent Revenue of $4500.

Problem 2: Eagle Company reported Salaries and Wages Payable of $775 at the beginning of the year and $2550 at the end of the year. The income statement for the year reported Salaries and Wages Expense of $56,700. How much cash was paid for salaries and wages during the year?

Select one:

A. $54,150

B. $53,375

C. $56,700

D. $54,925