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Q#1 AEE Ref# 230717 Multiple Choice Identify the choice that best completes the statement or answers the question 1. A Corporation provides plumbing services. Transactions during the first year of operations are given below *Received $11,000 cash and issued common stock to Sharon. * Paid $2,000 for equipment to be used for plumbing repairs. +Borrowed S10,000 from a local bank and deposited the money in the checking account. * Paid $300 in rent for the year. *Paid $200 for plumbing supplies to be used on various jobs next year. Completed a plumbing repair for a law firm and received $3,000 Calculate the amount of total assets at the end of the first year. HINT: Record the transactions a. $2,200 b. $21,000 c. $21,500 d. $23,700 Failure to record the expired amount of prepaid rent expense would not a. understate liabilities. b. understate expense. c. overstate net income. d. overstate owners' equity. 2. 3. An adjusting entry will not take the format of which one of the following entries? A debit to an expense account and a credit to an asset account a. b. A debit to an asset account and a credit to a revenue account A debit to a liability account and a credit to a revenue account c. d. A debit to an expense account and a credit to a revenue account 4. The balance in the office supplies account on June 1 was $6,300, supplies purchased during June were $3,100, The amount to be used for the appropriate adjusting entry is and the supplies on hand at June 30 were $2,500. a. $3,700 b. $11,900 c. $6,900 d. $5,700 A company purchases a one-year insurance policy on June 1 for $1,260. is 5. The adjusting entry on December 31 a. b. c. d. debit Insurance Expense, $630 and credit Prepaid Insurance, $630. debit Insurance Expense, $525 and credit Prepaid Insurance, $525. debit Insurance Expense, $735, and credit Prepaid Insurance, $735. debit Prepaid Insurance, $630, and credit Cash, $630