1. X Company received a utility bill of $1100 which was not yet paid, what is the adjusting entry should be prepared on Dec.31, 2020?

a. No Entry.

b. Debit Utility Exp. $1100 and Credit Utility Pay. $1100.

c. Debit Utility Exp. $1100 and Credit Prepaid Utility $1100.

d. Debit Utility Exp. $1100 and Credit Cash $1100.

.

2. X Company received $3600 in advance to rent an equipment for on year starting Nov.1, 2020 (monthly rent is $300), what is the adjusting entry should be prepared on Dec.31, 2020?

a. Debit Rent Exp. $600 and Credit Prepaid Rent $600.

b. Debit Rent Exp. $300 and Credit Prepaid Rent $300.

c. Debit Unearned Rent $600 and Credit Rent Rev. $600.

d. Debit Unearned Rent $300 and Credit Rent Rev. $300.

.

3. X Company paid $2400 in advance for a one year rent on Nov.1, 2020 (monthly expires by $200), what is the adjusting entry should be prepared on Dec.31, 2020?

a. Debit Rent Exp.$400 and Credit Prepaid Rent $400 .

b. Debit Rent Exp. $200 and Credit Prepaid Rent $200 .

c. Debit Unearned Rent $200 and Credit Rent Rev. $200 .

d. Debit Unearned Rent $400 and Credit Rent Rev. $400 .

.

4. X Company purchasesd Insurance Policy by $2400 on Oct.1, 2020. the insurance policy expires $200 monthly, what is the adjusting entry should be prepared on Dec.31, 2020?

a. Debit Insurance Exp. $2400 and Credit Preapid Insurance $2400.

b. Debit Insurance Exp. $2200 and Credit Prepaid Insurance $2200.

c. Debit Insurance Exp. $600 and Credit Prepaid Insurance $600.

d. Debit Insurance Exp. $200 and Credit Prepaid Insurance $200.

.

5. X Company paid $1200 in advance for a one year rent on Nov.1, 2020 (monthly expires by $100), what is the adjusting entry should be prepared on Dec.31, 2020?

a. Debit Unearned Rent $100 and Credit Rent Rev. $100 .

b. Debit Unearned Rent $200 and Credit Rent Rev. $200 .

c. Debit Rent Exp. $100 and Credit Prepaid Rent $100 .

d. Debit Rent Exp.$200 and Credit Prepaid Rent $200 .