12. An employee who had performed services for Ajax Company during the year had not been paid by December 31 . The adjusting entry which Ajax Company must make before it prepares its financial statements for the year ended December 31 involves: a. A credit to a liability account. b. A debit to a liability account. c. A credit to an asset account. d. A debit to an asset account. e. No entry is required until the employee is paid. 13. Which of the following accounts would NOT appear in the post-closing trial balance? a. Unearned Rent Revenue b. Dividends c. Supplies d. Salaries Payable 14. When preparing a bank reconciliation, deposits in transit are: a. added to the balance per bank statement. b. subtracted from the balanee per bank statement. c. added to the balance per company records. d. subtracted from the balance per company records. 15. Goods available for sale is equal to: a. ending inventory plus beginning inventory. b. beginning inventory, plus net purchases, minus ending inventory. c. net purchases plus beginning inventory. d. costs of goods sold minus beginning inventory. 16. Leigh Sawyer, an attorney, does not include her personal stock investments on the balance sheet for her law practice. This is an example of the basic principle of a. Accounting period. b. Full disclosure. c. Conservatism. d. Accounting entity. e. None of these. 17. Peter Paint Company sold $260 of custom wallpaper to Bruno Builder on March 7,19XX, with the terms 3/15,n/30. If Bruno Builder remits payment on March 19,19XX, then Peter Paint Company will record (assuming gross method is used): a. a credit to Sales Discounts for $7.80. b. a credit to Accounts Receivable for $252.20. c. a debit to Cash for $252.20. d. a debit to Accounts Receivable for $260.00