10. On December 31, 2017, Avery Corporation paid $12,000 for next year's insurance policy. What is the effect of this transaction on Avery's calendar 2017 income? A) No effect B) $1000 C) $6000 D) $12000 11. On January 1, 2018 Miller Corporation had retained earnings of $8,000,000. During 2018, Miller reported net income of $1,500,000, declared dividends of $500,000, and issued stock for $1,000,000. What were Miller's retained earnings on December 31, 2018? A $7,000,000 B $9,000,000 C. $9,500,000 D. $7,500,000 12. Which of the following properly describes the impact on the financial statements when a company reports wage expense of $7,500, of which $2,500 remains unpaid? A. Net income decreased $10,000. () Net income decreased $7,500. C. Cash decreased $2,500. D. Cash decreased $7,500. 13. Macy's orders 100 pairs of Levi's jeans for future delivery. What accounting entry should Levi's make on the order date? A) Accrual of sales revenue to accounts receivable B) Adjusting entry - unearned (prepaid) revenue C) Recognition of credit revenues D) No accounting entry is required