1.The unearned rent account has a balance of $40,766. If $5,746 of the $40,766 is unearned at the end of the accounting period, the amount of the adjusting entry is

a.$5,746

b.$35,020

c.$46,512

d.$40,766

2.If total liabilities decreased by $22,160 during a period of time and stockholders' equity increased by $31,665 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is a

a.$22,160 decrease

b.$22,160 increase

c.$9,505 decrease

d.$9,505 increase

3.

The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.

Accounts Payable	$595		Fees Earned	$3,277
Accounts Receivable	650		Insurance Expense	542
Prepaid Insurance	1,795		Land	2,800
Cash	1,859		Wages Expense	697
Dividends	531		Common Stock	5,002

Prepare a trial balance. The total of the debits is

$5,002

$8,874

$7,104

$1,239

4.

Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $4,800 and recorded it as a prepaid expense. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Dianes first month of operations on March 31?

a.$400

b.$480

c.$4,800

d.$4,400

5.

The journal entry to close the Fees Earned, $108, and Rent Revenue, $45, accounts during the year-end closing process would involve:

a.a debit to a general revenue account

b.a credit to a general revenue account

c.debits to the two revenue accounts

d.credits to the two revenue accounts

6.

The net income reported on the income statement is $90,906. However, adjusting entries have not been made at the end of the period for supplies expense of $4,436 and accrued salaries of $5,397. Net income, as corrected, is

a.$90,906

b.$86,470

c.$85,509

d.$81,073

7.

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $38,746 and $21,277, respectively. What is the amount of net income or net loss for the period?

a.$17,469 net loss

b.$17,469 net income

c.$21,277 net income

d.$38,746 net loss

8..After all of the account balances have been extended to the Income Statement columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $20,031 and $37,654, respectively. What is the amount of the net income or net loss for the period?

a.$20,031 net income

b.$17,623 net income

c.$17,623 net loss

d.$37,654 net loss

9.

1. Gently Laser Clinic purchased laser equipment for $6,621 and paid $834 down, with the remainder to be paid later. The correct entry would be

   a.

   Cash	834
   Equipment			834

   b.

   Equipment Expense	6,621
   Accounts Payable			834
   Cash			5,787

   c.

   Equipment	6,621
   Accounts Payable			5,787
   Cash			834

   d.

   Cash	834
   Accounts Payable	5,787
   Equipment			6,621

   e.

   Equipment	834
   Cash			834

10.

Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $91,345. The Focus Company initially offered to buy the land for $108,881. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $104,273. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company?

a.$104,273

b.$212,000

c.$108,881

d.$91,345