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13. Unearned revenues are (9) cash received and a liabllty recorded before services are periomed. b. revenue for services performed and recorded as liabilities before

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13. Unearned revenues are (9) cash received and a liabllty recorded before services are periomed. b. revenue for services performed and recorded as liabilities before they are recelved. c. revenue for services performed but not yet received in cash or recorded. d. revenue for servioes performed and already recelved in cash and recorded. 14. Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $1,900 still on hand. The appropriate adjusting joumal entry to be made at the end of the period would be a. Debit Supplies Expense, \$1,900; Credit Supplies, \$1,900. b. Debit Supplies, $5,100, Credit Supplies Expense, $5,100. c. Debit Supplies Expense, 55,100, Credit Supplies, \$5, 100. d. Debit Suppliese, $1,800, Credit Supplies Expense, \$1,900. 15. Meat Puppets Compary purchased equipment for $7,200 on December 1 . it is estimated that annual depreciation on the equipment will be $1,800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: a. Debit Depreciation Expense, $1,800, Credit Accumulated Depreciation, \$1, 800 . b. Debit Depreciation Expense, $150; Credit Accumulated Depreciation, $150. c. Dobit Depreciation Expense, $5,400; Credit Accumulated Depreciation, $5,400. d. Debit Equipment, \$7,200; Credit Accumulated Depreciation, \$7,200. 16. True False If total credits in the income statement columns of a worksheet exceed total debits, the business has net income. 17. True False Closing entries are unnecessary if the business plans to continue operating in the future and issue financial statements each year. 18. True False Closing entries are journalized after adjusting entries have been joumalized. 19. True False Long-term investments would appear in the property, plant, and equipment section of the balance sheet

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