1. Of the following adjusting entries, which would result in an increase in assets at the end of the period? The entry to record the earned portion of rent received in advance. B The entry to accrue unrecorded interest expense. C The entry to accrue unrecorded interest revenue. D The entry to record expiration of prepaid insurance. 2. Which of the following transactions would necessitate applying the present value of an annuity due factor? Bronte rents a truck for 5 years with annual rental payments of $20,000 to be made at the beginning of each A B C D year. Bronte rents a warehouse for 7 years with annual rental payments of $120,000 to be made at the end of each year. Bronte borrows $120,000 and agrees to pay back the principal and interest at the beginning of the fourth year. Bronte borrows $120,000 and agrees to pay back the principal and interest at the end of the fourth year. 3. The following account balances were included in Besta Company's 2021 adjusted trial balance: Sales Cost of Goods Sold Salaries Expense Rent Expense Depreciation Expense Unearned Revenue Unrealized Loss-Trading Securities Gain on Sale of Available for Sale Securities Unrealized Loss-Available for Sale Securities Dividends declared How much is Besla Company's 2021 net income? $350,000 225,000 30,000 15,000 13,000 10,000 3,000 6,000 5,000 20,000 $80,000 $64,000 C $50,000 D $70,000 4. Based on the information in the previous question, how much is Besla Company's 2021 [total] comprehensive income? $5,000 A B $6,000 C $65,000 D $45,000 5. A change from the FIFO method to the weighted average method A Should be ignored. B requires a prospective adjustment. requires a retrospective/ retroactive adjustment. D is not allowed under US GAAP