23. If a company fails to make an adjusting entry to record supplies expense, then A. stockholders' equity will be understated. B. expense will be understated. C. assets will be understated. D. net income will be understated. 24. Which of the following would not result in unearned revenue? A. Rent collected in advance from tenants B. Services performed on account C. Sale of season tickets to football games D. Sale of two-year magazine subscriptions 25. Stine Real Estate signed a four-month note payable in the amount of $10,000 on September 1. The note requires interest at an annual rate of 12%. The amount of interest to be accrued at the end of September is A. $400 B. $100 C. $1,200 D. $300 26. Closing entries are A. an optional step in the accounting cycle. B. posted to the ledger accounts from the work sheet. C. made to close permanent or real accounts. D. journalized in the general journal. 27. The Income Summary account A. is a permanent account. B. appears on the balance sheet. C. appears on the income statement D. is a temporary account. 28. In order to close the Dividends account, the A. Income Summary account should be debited. B. Income Summary account should be credited. C. Retained Earnings account should be credited. D. Retained Earnings account should be debited.