16) In January, 2018, ABC sells a gift card for $50 and receives cash. In February, 2018, the customer comes back and spends $20 of their gift card on a water bottle. What would be the appropriate journal entry for the purchase of the water bottle? A) Debit Deferred Revenue, $50; credit Sales Revenue, $50. B) No journal entry is necessary C) Debit Sales Revenue, $20; credit Deferred Revenue, $20 D) Debit Deferred Revenue, $20; credit Sales Revenue, $20. 17) When we get a line of credit from the bank A) Expenses Increase B) Liabilities Increase C) No change to the Balance Sheet and no change to the Income Statement '01s, tine cusinn r D) Assets increase 18) Issued common stock for cash. Purchased equipment by signing a note payable. Provided services to customers on account. Collected cash from customers on account. theec How many of the above transactions increased the given company's total liabilities? A) Two. D) Three. B) One. C) Four 19) ABC purchased a computer that cost $10,000. It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and was sold at the end of the fourth year of use for $3,000 cash. ABC should record: A) a loss of $1,000. B) neither a gain nor a loss-the gain that occurred in this case would not be recognized. C) a gain of $1,000. D) neither a gain nor a loss-the computer was sold at its book value 20) ABC purchased equipment for $60,000 on January 1,2018. The equipment is ekpected to have five-year life, with a residual value of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2019 and the book value at December 31, 2019 would be A ) $ 12,000 and $36,000. C) $11,000 and $33,000. B) $11,000 and $38,000. o th D) $12,000 and $31,000. 21) At the end of a reporting period, ABC determines that its ending inventory has a cost of $300,000 and a net realizable value of $230,000. What would be the effect(s) of the adjustment to write down inventory to net realizable value? A) Decrease total assets. C) Decrease total assets and net income. B) Decrease net income. D) Increase retained earnings. ito hv