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b. 23. Which one of the following would not be classified as a current liability? a. Accounts payable b. Note payable, due in 2 years c. Salaries and wages payable d. Income taxes payable 24. On January 1, 2009, James Company sold a machine for $10,000 that it had used for several The machine cost $22,000, and had accumulated depreciation of S9,000 at the time of sale. What loss will be reported on the income statement for the sale of the machine? Gain of $10,000 a. b Loss of $13,000 Loss of $3,000 d. c. Gain of $3,000 25. At the end of the year a company makes a journal entry to record that it has incurred $4,000 of wages that it has not yet paid. What is the impact of this journal entry? a. Both assets and liabilities decrease. b. Both assets and expenses decrease c. Liabilities increase and expenses increase. d. Liabilities increase and revenues increases. 26. Stasia, Inc. has a weekly payroll of $8,000 for a 5-day work week beginning each Monday and ending each Friday. Stasia's year-end is December 31st. If December 31st falls on a Wednesday,Stasia would make an adjusting entry to increase wages expense by $4,800 b. a. decrease wages payable by $4,800 decrease cash by $4,800 d. c. increase wages payable by $8,000 27. Petra's Salon sells $50,000 of gift cards in May of 2009. These gift cards may be used anytime before their expiration on May 31, 2010. Which one of the following is the correct journal entry for Petra to record the sale of the gift cards? Debit Cash 50,000; Credit Accounts Payable 50,000 b. Debit Cash 50,000; Credit Unearned Sales Revenue 50,000 c. Debit Cash 50,000; Credit Sales Revenue 50,000 d. a. Debit Cash 50,000; Credit Prepaid Sales Revenue 50,000 28. If a company collects money in advance from a customer, the accounting entry will show: An increase in liabilities and a decrease in assets. a. b. An increase in liabilities and an increase in assets. c. An increase in revenues and an increase in assets. d. An increase in assets and an increase in expenses