Question : 88.Refer to the information above. After the appropriate adjusting entry : 1259760

 

 

88.Refer to the information above. After the appropriate adjusting entry is recorded, the balance in the liability account Unearned Fees will:   

A. Decrease by $9,800.

 

B. Increase by $9,800.

 

C. Equal $9,800.

 

D. Be unaffected.

 

 

 

 

89.Refer to the information above. The entry to record rent expense will include:   

A. A debit to Prepaid Rent for $6,000.

 

B. A credit to Prepaid Rent for $6,000.

 

C. A credit to Prepaid Rent for $18,000.

 

D. A debit to Prepaid Rent for $18,000.

 

 

 

 

90.Refer to the information above. Failure to make the appropriate adjustment to the Salary Expense account will:   

A. Understate net income for December by $6,800.

 

B. Understate net income for January by $6,800.

 

C. Overstate total liabilities at December 31.

 

D. Overstate the balance in Cash at December 31.

 

 

 

 

91.On December 31, Louis Jeweler’s made an adjusting entry to record $4,200 accrued interest payable on its mortgage. On January 10, the mortgage payment was made. This payment included interest charges of $6,300, $2,100 of which were applicable to the period from January 1 through January 10. When recording this mortgage payment, the accountant should:   

A. Debit Interest Expense $2,100 and debit Accrued Interest Payable $4,200.

 

B. Debit Interest Expense $6,300.

 

C. Debit Accrued Interest Payable $6,300.

 

D. Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200.

 

 

 

 

92.Under accrual accounting, salaries earned by employees but not yet paid should be expensed:   

A. In the period in which they are earned.

 

B. In the period in which they are paid.

 

C. In the period with the higher earnings.

 

D. In the period with the lower earnings.

 

 

 

 

93.Gordy’s Corp. has seven employees. Each earns $800 per week for a five day work week ending on Friday. This month, the last day of the month falls on a Thursday. The company should make an adjusting entry:   

A. Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480.

 

B. Debiting Wage Expense for $640 and crediting Wages Payable for $640.

 

C. Crediting Wage Expense for $4,480 and debiting Wages Payable for $4,480.

 

D. Crediting Wage Expense for $640 and debiting Wages Payable for $640.

 

 

 

 

94.Refer to the information above. What amount of interest expense has accrued on the bank loan?   

A. $3,200

 

B. $3,500

 

C. $3,600

 

D. $3,900

 

 

 

95.Refer to the information above. How much is owed the employees for their wages?   

A. $0

 

B. $2,560

 

C. $5,120

 

D. $12,800

 

 

 

96.Refer to the information above. What should be the balance of the Prepaid Rent?   

A. $0.

 

B. $7,000.

 

C. $14,000.

 

D. $21,000.

 

 

 

97.Refer to the information above. How much depreciation expense should be recorded for December?   

A. $206.

 

B. $472.

 

C. $12,360.

 

D. $9,800.