1-Key Company collected $6,500 in October 1 of 2018 for 5 months of service which would take place from October of 2018 through February of 2019. The revenue reported from this transaction at the end of the 2018 adjusting entry would be:*

$0

$3,900

$6,500

$2,600

2-A company usually determines the amount of supplies used during a period by:*

Adding the supplies on hand to the balance of the Supplies account

Summing the amount of supplies purchased during the period

Taking the difference between the supplies purchased and the supplies paid for during the period

Taking the difference between the balance of the Supplies account and the cost of supplies on hand

3-At March 1, 2020, Candy Inc. had supplies on hand of $500. During the month, Candy purchased supplies of $1,200 and used supplies of $1,500. The March 31 adjusting journal entry should include a:*

Debit to the supplies account for $1,500

Credit to the supplies account for $500

Debit to the supplies account for $1,200

Credit to the supplies account for $1,500

4-If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be:*

Debit Unearned Revenue and credit Cash

Debit Unearned Revenue and credit Service Revenue

Debit Unearned Revenue and credit Prepaid Expense

Debit Unearned Revenue and credit Accounts Receivable

5-Maple Tree Inc. purchased a 12-month insurance policy on March 1, 2019 for $900. At December 31, 2019, the adjusting journal entry to record expiration of this asset will include a:*

Debit to Insurance Expense and a credit to Prepaid Insurance for $900

Debit to Prepaid Insurance and a credit to Insurance Expense for $100

Debit to Insurance Expense and a credit to Prepaid Insurance for $75

None of the above

6-Baden Company received a check for $18,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent was credited for the full $18,000. Financial statements will be prepared on July 31. Baden should make the following adjusting entry

on July 31:*

Debit Unearned Rent Revenue, $3,000; Credit Rent Revenue, $3,000

Debit Rent Revenue, $3,000; Credit Unearned Rent Revenue, $3,000

Debit Unearned Rent Revenue, $18,000; Credit Rent Revenue, $18,000

Debit Cash, $18,000; Credit Rent Revenue, $18,000

7-If business pays rent in advance and debits a Prepaid Rent account, the company receiving the rent payment will credit:*

Cash

Prepaid rent

Unearned rent revenue

Accrued rent revenue

8-A Company issued a one-year, 9%, $200,000 note on June 1, 2019. Interest expense for the year ended December 31, 2019 was:*

$18,000

$13,500

$12,000

$10,500