21. At October 1, 2021, Mondestin Industries had an accounts payable balance of $40,000. During the month, the company made purchases on account of $33,000 and made payments on account of $48,000. At October 31, 2021, the accounts payable balance is a. $25,000 b. $41,000 C. $55,000 d. $121,000 22. Damon Company made a debit entry to Equipment for $50,000, and a credit entry to Cash for $20,000. What must Damon Company do to balance this entry? a. They must make a debit entry to Notes Receivable for $30,000 b. They must make a debit entry to Notes Payable for $30,000 C. They must make a credit entry to Notes Receivable for $30,000 d. They must make a credit entry to Notes Payalbe for $30,000 23. G & G Electronics Company showed the following balances at the end of its first year Cash $ 4,000 Prepaid insurance 7,000 Accounts receivable 5,000 Accounts payable 4,000 Notes payable 6,000 Common stock 2,000 Dividends 1,000 Revenues 32,000 Expenses 25,000 What did G&G Company show as total credits on its trial balance? a. b. C. d. $9,000 $44,000 $45,000 $49,000 24. If a company fails to make an adjusting entry to record supplies expense, then a. stockholders' equity will be overstated b. expenses will be overstated C. assets will be understated. d. net income will be understated. 25. On December 1 Pegasus Management Company received $21,000 for three months of advanced rent. The adjusting entry required on December 31 is to a. debit Rent Expense, $7,000, credit Prepaid Rent, $7,000. b. debit Rent Expense, $14,000, credit Prepaid Rent $14,000 C. debit Prepaid Rent, $7,000, credit Rent Expense, $7,000. d. debit Prepaid Rent, $14,000, credit Rent Expense, $14,000. 26. If a business receives cash in advance of performing services and credits a liability account, the adjusting entry needed after the services are performed will be a. debit Unearned Service Revenue and credit Cash. b. debit Unearned Service Revenue and credit Service Revenue. C. debit Unearned Service Revenue and credit Prepaid Expense. d. debit Unearned Service Revenue and credit Accounts Receivable