Question : 149. The adjusting entry to record an accrued revenue is: A. Increase an : 1225735

149. 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.

150. On October 1, Haslip Company rented warehouse space to a tenant for $2,500 per month. The tenant paid five months’ rent in advance on that date. The payment was recorded 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.

151. Alex Company rents space to a tenant for $2,200 per month. The tenant currently owes two months rent, 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.

152. Alex 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.

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

154. On November 1, Jay Company loaned an affiliate $100,000 at a 9.0% 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 adjusting entry needed on December 31 is: 

A. Debit Interest Receivable, $750; credit Interest Revenue, $750.

B. Debit Interest Expense, $750; credit Interest Payable, $750.

C. Debit Interest Expense, $1,500; credit Interest Payable, $1,500.

D. Debit Interest Receivable, $2,250; credit Interest Revenue, $2,250.

E. Debit Interest Receivable, $1,500; credit Interest Revenue, $1,500.

155. Which of the following statements is incorrect? 

A. An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded.

B. An adjusted trial balance is a list of accounts and balances prepared after adjusting entries have been recorded and posted to the ledger.

C. Each trial balance amount is used in preparing the financial statements.

D. Financial statements should be prepared directly from information in the unadjusted trial balance.

E. Financial statements can be prepared directly from information in the adjusted trial balance.