1. The Houston Robots basketball team receives $5,000 for season tickets on August 1. By December 31, they have earned $2,000 of the revenue. The adjusting entry to be made on December 31 by the Houston Robots include a:

A. credit to Unearned Revenue of $2,000.

B. debit to Service Revenue of $2,000.

C. debit to Unearned Revenue of $2,000.

D. credit to Prepaid Revenue of $3,000.

1. On October 1, Blues Company paid $12,000 for one year of insurance, in advance. Which of the following will be part of the adjusting entry on December 31?

A. Debit Insurance Expense for $3,000

B. Debit Insurance Expense for $9,000

C. Debit Prepaid Insurance for $9,000

D. Debit Prepaid Insurance for $3,000

3. A company started the year with $400 of supplies. During the year, the company purchased an additional $1,200 of supplies. There were $700 of supplies on hand at the end of the year. An adjusting entry prepared at the end of the accounting period includes a:

A. debit to Supplies for $700.

B. debit to Supplies Expense for $600.

C. debit to Supplies Expense for $900.

D. debit to Supplies for $800.

4. Surveying Company, Inc. purchased supplies during the year totaling $25,500. If the adjusted trail balance shows an ending balance in the Supplies account of $18,600, what was the amount of supplies used by Surveying Company?

A. $14,900

B. $6,900

C. $18,600

D. $11,800

5. At December 31, the ABC Company owes an employee for four days of work that will not be paid until January 5^th. The weekly rate of pay for a five-day workweek is $1,000. The adjusting entry to record the accrued wages will include a:

A. debit to Salaries Payable for $800.

B. debit to Salaries Expense for $1,000.

C. debit to Salaries Payable for $1,000.

D. debit to Salaries Expense for $800.

6. Antler Company holds a $10,000 note receivable as an investment. Each month Antler earns $100 of interest revenue on the note. At the end of the accounting period, Antler needs to record the accrued revenue on the note for three months that it will receive next year. The amount of the adjusting journal entry would be:

A. $10,000.

B. $300.

C. $100.

D. $0.