1.2) A company sold land that that had originally cost $1,500 for $2,100. Which of the following accounts would be credited and for how much?

A.None of these

B. Cash $600

C. Loss on sale of land $600

D. Gain on sale of land: 600

2.4) Bad debts are to be recorded at 2% of sales. Sales made on credit totaled $100,000 for the year. Which of the following adjusting entries should be made at year end to record bad debt?

A. Allowance for Doubtful Accounts 2,000

Bad Debts Expense 2,000

B. Bad Debts Expense 2,000

Allowance for Doubtful Accounts 2,000

C. Allowance for doubtful accounts 1,000

Bad Debt Expense 1,000

D. Bad Debt Expense 1,000

Allowance for doubtful accounts 1,000

3.5) The income tax rate is 30% on current income and will be paid in the first quarter of next year. The pretax income of the company is $22,500. Which of the following adjusting journal entries should be prepared on December 31?

A. Debit: Income Taxes Payable 6,750

Credit: Income Tax Expense 6.750

B. Debit Income Tax Expense 6,750

Credit: Income Taxes Payable 6,750

C.Debit Prepaid Taxes 6,750

Credit Income Taxes Payable 6,750

D. Debit Income Taxes Payable 5,750

CreditPrepaid Taxes 5,750

4.8) Sales personnel travel reports indicate that $700 of advances had been used to pay travel expenses. During the adjusting journal entry, what accoun would be debited ?

A Selling Expenses

B. Advances to Sales Personnel

C. Salaries Expense

D.Accounts Receivable

5.9) On October 1, Southeastern, Inc. accepted a $5,000, 6 month, 8% (annual rate) note receivable from a customer, the interest to be collected when the note is collected. What amount should be credited to Interest Revenue on December 31?

A. $400

B. $150

C. $160

D. $100