1. Collection of a $1,000 Accounts Receivable

a. increases an asset $1,000; decreases an asset $1,000.

b. increases an asset $1,000; decreases a liability $1,000.

c. decreases a liability $1,000; increases stockholders' equity $1,000.

d. decreases an asset $1,000; decreases a liability $1,000.

2. Sebastian Belle has performed $2,000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Sebastian make?

a. Debit Cash and credit Unearned Service Revenue

b. Debit Accounts Receivable and credit Unearned Service Revenue

c. Debit Accounts Receivable and credit Service Revenue

d. Debit Unearned Service Revenue and credit Service Revenue

3. NWA Air Charter signed a four-month note payable in the amount of $20,000 on September 1. The note has an annual interest rate of 9%. The amount of interest to be accrued at September 30 is

a. $150.

b. $200.

c. $600.

d. $1,800.

4. Yo La Corporation issued a one-year, 6%, $100,000 note on August 31, 2019. Interest expense for the year ended December 31, 2019 was

a. $6,000.

b. $2,500.

c. $2,000.

d. $1,500.

5. In order to close the dividends account, the

a. income summary account should be debited.

b. income summary account should be credited.

c. retained earnings account should be credited.

d. dividends account should be credited.