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5. At the end of its accounting period, December 31, 2012, May Corporation owed $1,000 for property taxes which had not been recorded nor paid.
5. At the end of its accounting period, December 31, 2012, May Corporation owed $1,000 for property taxes which had not been recorded nor paid. Therefore, the 2012 adjusting entry should be which of the following?
A. $1,000 credited to an expense account and debited to a liability account.
B. $1,000 debited to an expense account and credited to an asset account.
C. $1,000 credited to a liability account and debited to an expense account.
D. $1,000 debited to a liability account and credited to an asset account.
6. As prepaid expenses expire with the passage of time, the correct adjusting entry will be a
A. debit to an expense account and a credit to an asset account.
B. debit to an asset account and a credit to an asset account.
C. debit to an expense account and a credit to an expense account.
D. debit to an asset account and a credit to an expense account.
Im really confused about these two questions. Much appreciated if anyone can help.
6. As prepaid expenses expire with the passage of time, the correct adjusting entry will be a
A. debit to an expense account and a credit to an asset account.
B. debit to an asset account and a credit to an asset account.
C. debit to an expense account and a credit to an expense account.
D. debit to an asset account and a credit to an expense account.
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