Question
1. Which of the following would be the adjusting journal entry to recognize earned but unpaid wages for the period? a Dr. Wages Expense, Cr.
1. Which of the following would be the adjusting journal entry to recognize earned but unpaid wages for the period?
a | Dr. Wages Expense, Cr. Cash |
b | Dr. Wages Payable, Cr. Cash |
c | Dr. Wages Payable, Cr. Wages Expense |
d | Dr. Wages Expense, Cr. Wages Payable |
2. Which of the following would be the effect of a transaction to record the portion of prepaid rent that has expired in a period?
a. increase Prepaid Rent, decrease Rent Expense |
b | increase Rent Expense, decrease Cash |
c | increase Prepaid Rent, decrease Cash |
d | increase Rent Expense, decrease Prepaid Rent |
3. If the company had a loan outstanding, which of the following would be used to record accrued interest at the end of the accounting period?
a. increase Interest Expense, decrease Cash |
b | increase Interest Expense, increase Interest Payable |
c | decrease Interest Payable, increase Interest Income |
d | decrease Interest Payable, decrease Cash |
4. On March 31, 2020 Exacto Company paid $5,200 for a 1-year insurance policy. To record this transaction Exacto Company should
a. decrease Cash and increase Insurance Expense. |
b. | decrease Cash and increase Prepaid Insurance. |
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