(1) Kendall Company purchased equipment on November 1, 2018 and signed a 3-month, 9% note with a face value of $40,000. The December 31, 2018 adjusting entry

debit Interest Expense and credit Interest Payable,

$600 debit Interest Expense and credit Interest Payable,

$3,600 debit Interest Expense and credit Interest Payable,

$900 debit Interest Expense and credit Cash, $600

(2) Which of the following is NOT considered an end-of-period adjusting entry?

An entry to record revenue which has been earned but has not yet been billed to customers

The entry to record the portion of unexpired insurance which has become expense during the period

The entry to record depreciation expense

An entry to record repayment of a bank loan and to recognize related interest expense

(3) On June 1, 2018, Leslie Corporation received $4,104 in advance for a two-year rental of some land, and credited Unearned Rent. The adjusting entry on December 31, 2018 would include a:

debit to Unearned Rent for $2,907

credit to Rent Revenue for $1,197

credit to Unearned Rent for $1,197

debit to Unearned Rent for $1,026

(4) Cheng Company obtained a $25,000, one-year, 12 percent bank loan on November 1 of the current year. Interest is payable at the end of the loan term. The companys adjusting entry needed on December 31 is:

A debit to Interest Expense of $3,000 and a credit to Interest Payable of $3,000

A debit to Interest Receivable of $500 and a credit to Interest Revenue of $500

A debit to Interest Expense of $500 and a credit to Interest Payable of $500

A debit to Interest Expense of $250 and a credit to Interest Payable of $250

(5) On August 1, 2018, We R Clean Company signed a 9-month contract with a hotel chain to provide pool and spa cleaning services for 3 hotel sites. The contract price of $14,850 was collected on the date the contract was signed. The services will be provided evenly over the next 9 months, starting on August 1. The adjusting entry on December 31, 2018 will

Credit Service Revenue for $6,600

Debit Earned Revenue for $6,600

Credit Service Revenue for 8,910

Debit Unearned Revenue for $8,250