Question
1) The assets and liabilities of a company are $88,030 and $43,809, respectively. Stockholders' equity should equal $131,839 $88,030 $44,221 $43,809 2) Which of the
1) The assets and liabilities of a company are $88,030 and $43,809, respectively. Stockholders' equity should equal
$131,839
$88,030
$44,221
$43,809
2) Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $18,680 and unexpired insurance of $5,463, for the fiscal year ending on April 30?
debit Prepaid Insurance, $18,680; credit Insurance Expense, $18,680
debit Insurance Expense, $18,680; credit Prepaid Insurance, $18,680
debit Insurance Expense, $13,217; credit Prepaid Insurance, $13,217
debit Prepaid Insurance, $13,217; credit Insurance Expense, $13,217
3) Buster Industries pays weekly salaries of $38,550 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is
debit Dividends, $15,420; credit Cash, $15,420
debit Salaries Payable, $15,420; credit Cash, $15,420
debit Salary Expense, $15,420; credit Salaries Payable, $15,420
debit Salary Expense, $15,420; credit Dividends, $15,420
4) The unearned rent account has a balance of $52,899. If $4,428 of the $52,899 is unearned at the end of the accounting period, the amount of the adjusting entry is
$52,899
$48,471
$4,428
$57,327
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