1) True False The following Journal Entries are correct based upon the following: Danielle is starting a Company and is funding it with $200,000 of her own money. She then bought Office Furniture for $5,000 Cash, Prepaid Rent in the amount of $12,000 was paid in Cash. Danielle was also paid $10,000 ahead of time for her services. Danielle Cash Common Stock Equity) 200,000 (Danielle starting company) 200,000 Office Furniture Cash 5,000 5,000 (Purchased furniture for the office) Prepaid Rent 12,000 Cash 12,000 (Paid rent ahead of time, Rent is 1,000 per month) Cash Unearned Revenue 10,000 10,000 (Services paid to Danielle in advance by XYZ Company) 5)True False When Company 1 sells to Company 2, and Company 2 does not pay right away, Company I has an Accounts Receivable. When Company 1 buys something and does not pay for it right away, it has an Accounts Payable. 6. Dan prepared a tax return for a client and the fee is $300. The client pays for this with a Credit Card. The Credit Card Company receives 2% for each transaction. The note shows (Tax Retum Services for Jones for 2019). The correct Journal Entry for this is: Credit Card Expense A) Cash 300 6 Sales 306 B) Cash 294 Credit Card Expense 6 Sales 300 C) Neither of the above