18 Chase Company rents space to a tenant for $3,600 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. The adjusting entry needed on December 31 is: 01:53:51 Multiple Choice Debit Accounts Receivable, $7,200; Rent Revenue, $7,200. Debit Accounts Receivable, $10,800; credit Rent Revenue, $10,800. Debit Unearned Revenue, $3,600; credit Rent Revenue, $3,600. Debit Unearned Revenue, $7,200; credit Rent Revenue, $7,200. Debit Accounts Receivable, $3,600; Rent Revenue, $3,600. 19 Chase Company has 10 employees, who earn a total of $3,400 in salaries each working day. They are paid on Monday for the five-day work week ending on the previous Friday. Assume that year ended on December 31, which is a Wednesday, and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is: 8 01:53:45 Multiple Choice Debit Salaries Expense, $17,000; credit Salaries Payable, $17,000. Debit Salaries Expense, $10,200; credit Salaries Payable, $10,200. Debit Salaries Expense, $6,800; credit Salaries Payable, $6,800. Debit Salaries Expense, $10,200; credit Cash, $10,200. Debit Salaries Payable, $10,200; credit Salaries Expense, $10,200. 20 The following information is available for Brendon Company before closing the accounts. What will be the amount in the Income Summary account that should be closed to Retained earnings? 8 01:53:40 Retained earnings Dividends Services revenue Depreciation Expense-Equipment Wages expense Interest expense Insurance expense Rent expense $ 168,000 60,500 280,000 18,200 106,400 5, 200 17,400 36,400 Multiple Choice $51,500. $35,900. $96,400. $107,500. 0 $54,100. 21 Use the information in the adjusted trial balance presented below to calculate current assets for Wicked Wicker Company: Credit Debit $ 53,000 26,000 10,600 200,000 01:53:33 $ 100,000 Account Title Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation-Equipment Land Accounts payable Interest payable Unearned revenue Long-term notes payable Retained earnings 105,000 27,000 4,900 8,000 60,000 194,700 $ 394,600 Totals $ 394,600 Multiple Choice $89,600. $27,000. $10,100. $289,600. $105,000. 22 An adjusting entry was made on year-end December 31 to accrue salary expense of $2,300. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $5,200 payment of salaries in January of the following year? 8 01:53:26 Multiple Choice Credit Account Title Salaries Payable Cash Debit 5, 200 5,200 Credit Account Title Salaries Payable Salaries Expense Cash Debit 2,300 2,900 5,200 O Credit Account Title Salaries Expense Salaries Payable Debit 2,300 2,300 Credit Account Title Salaries Expense Cash Debit 5, 200 5,200 O Credit Account Title Salaries Payable Cash Debit 2,300 2,300 23 At the beginning of the year, a company's balance sheet reported the following balances: Total Assets = $185,000; Total Liabilities = $25,200; Common Stock of $58,800; and Retained Earnings = $101,000. During the year, the company reported revenues of $51,400 and expenses of $33,600. In addition, dividends for the year totaled $22,400. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be: 8 01:53:21 Multiple Choice $96,400. $73,800. $141,200. $4,600. $105,600. 24 The balances in Lab Accounting Services' office supplies account on February 1 and February 28 were $1,200 and $150, respectively. If the office supplies expense for the month is $1,400, what amount of office supplies was purchased during February? 01:53:16 Multiple Choice $1,350 $350 o $1,200 $150 $2,450 25 A company purchased a new delivery van at a cost of $46,000 on January 1. The delivery van is estimated to have a useful life of 4 years and a salvage value of $3,400. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31? 8 01:53:12 Multiple Choice $6,175. $5,325. $4,250. $5,750. $10,650