13. A company paid for 12 months of internet services for $800 on October 1. They recorded the transaction by debiting Prepaid Internet Service and crediting cash. Which of the following adjusting journal entries, recorded on December 31, is correct?

A. Debit internet expense $200 and credit prepaid internet service $200.

B. Debit prepaid internet service $200 and credit internet expense $200.

C. Debit prepaid internet service $600 and credit internet expense $600

D. Debit internet expense $200 and credit cash $200.

E. None of the above.

14. Note that this problem is similar to the question above, but is not the same. A company paid for 12 months of internet services for $800 on October 1. They recorded the transaction by debiting Internet Expense 800 and crediting Cash 800. Which of the following adjusting journal entries, recorded on December 31, is correct?

A. Debit internet expense $200 and credit prepaid internet service 200.

B. Debit prepaid internet service $200 and credit internet expense 200.

C. Debit prepaid internet service $600 and credit internet expense 600

D. Debit internet expense $200 and credit cash 200.

E. None of the above.

15. On November 14, 2010, the Johnson Co. received $1200 in advance from a customer, for a contract that requires Johnson Co. to provide services later. At that time, the company debited Cash 1200 and credited Unearned Service Revenue 1200. By December 31, 2010, one fourth of the service under contract had been provided. Which of the following adjusting journal entries is required?

A. Debit Unearned Service Revenue 300 and credit Services Revenue 300.

B. Debit Services Revenue 300 and credit Unearned Services Revenue 300.

C. Debit Unearned Services Revenue 300 and credit Cash 300.

D. Debit Unearned Services Revenue 900 and credit Services Revenue 900.

16. Which of the following describes the typical result of closing journal entries?

A. Cost-of-goods sold will have a zero balance.

B. Wages Payable will have a zero balance.

C. Accounts receivable will have a zero balance.

D. All of the above