Question 22 3 pts On May 1st 2020, OIC, received $36,000 for May & June rent ?n

Question

Question 22 3 pts On May 1st 2020, OIC, received $36,000 for May & June rent ?n addition to an $18,000 security deposit from a new tenant. How will Owl's financial statements change based on the entry they should make on May 1st, 2020? O Assets: Increase/Liabilities: Decrease / SE: Increase / Ni: Increase Assets Increase /Lbilities: Increase / SE: Increase/Nit: Increase O Assets: Decrease/Liabilities: Decrease/SE: No Effect/Ni: No Effect Assets: Increase / Llabilities: Increase / SE: No Effect / NI: No Effect Question 23 3

Explanation / Answer

QUESTION 22

ANSWER = D) ASSET: INCREASE / LIABILITY: INCREASE/ SE: NO EFFECT/ NI: NO EFFECT

Rent for may and june received on 1 may = rent received in advance will increase assets (Cash) and will increase the liability because the income will realised in month of may and june. No effect on SE and NI.

QUESTION 17

Answer = A) Yes & No

when is the fair value method is used to account for investments in common stock that was purchased with the intent to sell in 6 months, the following affect the investor's reported investment income - change in investee's common stock market value.

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