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Question - Keating Inc. rents its headquarters from Starling Enterprises for $10,000 per month. On September 1, 20XX, Keating pays Starling $60,000 for six months worth of rent.
a. Record the entry that Keating Inc. would make on September 1 when the payment is made to Starling.
b. Record the entry that Starling Enterprises would make on September 1 when they receive the rent payment from Keating.
c. Record the adjusting entry that Keating should make on December 31, when the company begins to prepare its annual financial statements.
d. Record the adjusting entry that Starling should make on December 31, when the company begins to prepare its annual financial statements.
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