1.

A company purchases a one-year insurance policy on June 1 for $1,835. Determine the adjusting entry on December 31.

debit Insurance Expense, $1,070 and credit Prepaid Insurance, $1,835

debit Insurance Expense, $1,835 and credit Prepaid Insurance, $1,835

debit Prepaid Insurance, $765 and credit Cash, $765

debit Insurance Expense, $1,070 and credit Prepaid Insurance, $1,070 2.

Allen Marks is the sole stockholder and operator of Great Marks Company. As at December 31, 2013, Great Marks Company has assets of $916,956 and liabilities of $269,921. During 2014, Allen Marks purchased an additional $28,231 of capital stock and received $25,581 in cash dividends from the business. What is the amount of net income of Great Marks Company during 2014, assuming that as of December 31, 2014, assets were $984,233, and liabilities were $232,804?

Select the correct answer.

$37,117

$25,581

$101,744

$67,277 3.

Assuming a 360-day year, when a $10,217, 90-day, 5% interest-bearing note payable matures, total payment will amount to:

Select the correct answer.

$10,345

$511

$10,728

$128 4.

Allowance for Doubtful Accounts has a debit balance of $806 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $15,011. Which of the following entries records the proper adjusting entry for bad debt expense?

Select the correct answer.

debit Bad Debt Expense, $14,205; credit Allowance for Doubtful Accounts, $14,205

debit Bad Debt Expense, $806; credit Allowance for Doubtful Accounts, $806

debit Bad Debt Expense, $15,817; credit Allowance for Doubtful Accounts, $15,817

debit Allowance for Doubtful Accounts, $15,011; credit Bad Debt Expense, $15,011 5.

Using the following information, what is the amount of merchandise available for sale?

Purchases	$29,920		Purchase discounts	$827
Merchandise inventory April 1	$6,665		Merchandise inventory April 30	$9,822
Sales returns and allowances	$1,221		Sales	$59,119
Purchases returns and allowances	$898		Transportation In	$933

Select the correct answer.

$57,898

$29,128

$35,793

$31,927 6.

The following account balances were taken from the Adjusted Trial Balance columns of the work sheet:

Accumulated Depreciation	$2,217
Fees Earned	$15,688
Depreciation Expense	$967
Insurance Expense	$425
Prepaid Insurance	$3,953
Supplies	$1,629
Supplies Expenses	$3,150

Find the net income for the period.

Select the correct answer.

$3,347

$11,146

$4,542

$8,929