Question : 159.Assuming unearned revenues originally recorded in balance sheet accounts, the : 1236839

 

159.Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:   

A.Increase an expense; increase a liability.

B.Increase an asset; increase revenue.

C.Decrease a liability; increase revenue.

D.Increase an expense; decrease an asset.

E.Increase an expense; decrease a liability.

160.The adjusting entry to record an accrued expense is:   

A.Increase an expense; increase a liability.

B.Increase an asset; increase revenue.

C.Decrease a liability; increase revenue.

D.Increase an expense; decrease an asset.

E.Increase an expense; decrease a liability.

161.The adjusting entry to record an accrued revenue is:   

A.Increase an expense; increase a liability.

B.Increase an asset; increase revenue.

C.Decrease a liability; increase revenue.

D.Increase an expense; decrease an asset.

E.Increase an expense; decrease a liability.

162.On October 1, Goodwell Company rented warehouse space to a tenant for $2,500 per month. The tenant paid five months’ rent in advance on that date. The collection was credited to the Unearned Rent account. The company’s annual accounting period ends on December 31. The adjusting entry needed on December 31 is:   

A.Debit Rent Receivable, $12,500; credit Rent Earned, $12,500.

B.Debit Rent Receivable, $7,500; credit Rent Earned, $7,500.

C.Debit Unearned Rent, $7,500; credit Rent Earned, $7,500.

D.Debit Unearned Rent, $5,000; credit Rent Earned, $5,000.

E.Debit Unearned Rent, $12,500; credit Rent Earned, $12,500.

163.On October 1, Goodwell Company rented warehouse space to a tenant for $2,500 per month and received $12,500 for five months’ rent in advance on that date. The collection was credited to the Unearned Rent account. The company’s annual accounting period ends on December 31. The Unearned Rent account balance at the end of December, after adjustment, should be:   

A.$5,000.

B.$7,500.

C.$12,500.

D.$2,500.

E.$10,000.

164.Sanborn Company rents space to a tenant for $2,200 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. The adjusting entry needed on December 31 is:   

A.Debit Rent Receivable, $6,600; credit Rent Earned, $6,600.

B.Debit Unearned Rent, $4,400; credit Rent Earned, $4,400.

C.Debit Unearned Rent, $2,200; credit Rent Earned, $2,200.

D.Debit Rent Receivable, $4,400; credit Rent Earned, $4,400.

E.Debit Rent Receivable, $2,200; credit Rent Earned, $2,200.

165.Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:   

A.Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400.

B.Debit Salaries Expense, $3,600; credit Salaries Payable, $3,600.

C.Debit Salaries Expense, $9,000; credit Salaries Payable, $9,000.

D.Debit Salaries Payable, $5,400; credit Salaries Expense, $5,400.

E.Debit Salaries Expense, $5,400; credit Cash, $5,400.

166.On January 1, Imlay Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an estimated salvage value of $5,000. Imlay uses the straight-line depreciation method to allocate costs. The adjusting entry needed on December 31 of the first year is:   

A.Debit Depreciation Expense, $9,000; credit Accumulated Depreciation, $9,000.

B.Debit Depreciation Expense, $18,000; credit Accumulated Depreciation, $18,000.

C.Debit Depreciation Expense, $90,000; credit Accumulated Depreciation, $90,000.

D.Debit Depreciation Expense, $18,000; credit Equipment, $18,000.

E.Debit Depreciation Expense, $9,000; credit Equipment, $9,000.

167.Holman Company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciated at $15,000 per year using the straight-line depreciation method. The adjusting entry needed to record annual depreciation is:    

A.Debit Depreciation Expense, $15,000; credit Equipment, $15,000.

B.Debit Equipment, $15,000; credit Accumulated Depreciation, $15,000.

C.Debit Depreciation Expense, $10,000; credit Accumulated Depreciation, $10,000.

D.Debit Depreciation Expense, $10,000; credit Equipment, $10,000.

E.Debit Depreciation Expense, $15,000; credit Accumulated Depreciation, $15,000.

168.On November 1, Jovel Company loaned another company $100,000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company’s annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:    

A.$0.

B.$6,000.

C.$5,000.

D.$16,667.

E.$1,000.

 

 

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