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6 . On July 1 , 2 0 2 3 , Smith Industries signed a $ 1 4 5 , 0 0 0 , one

6. On July 1,2023, Smith Industries signed a $145,000, one-year, 6 percent note payable. The principal and interest will be paid on June 30,2024. How much interest expense should be reported on the income statement for the year ended December 31,2023?
Multiple Choice
$0
$1,305
$4,350
$8,700
7. Which of the following does not correctly describe an adjusting journal entry that debits depreciation expense and credits accumulated depreciation?
Multiple Choice
The entry increases expenses and increases assets.
The entry decreases net income and decreases assets.
The entry increases expenses and decreases retained earnings.
The entry decreases assets and decreases net income.
8. On January 1,2023, the general ledger of Hermoso Company included supplies of $2,500. During 2023, supplies purchased amounted to $12,500. A physical count of inventory on hand at December 31,2023 determined that the amount of supplies on hand was $3,000. How much is the supplies expense for year 2023?
Multiple Choice
$15,000
$13,000
$12,000
$2,500
9.On December 31,2023, Vivid Corporation prepared adjusting entries that included the following items:
Depreciation expense: $26,000.
Accrued sales revenue: $24,000.
Accrued expenses: $16,000.
Used insurance: $3,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $1,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.
If Vivid Corporation reported pretax income of $180,000 prior to the adjusting entries, how much is Vivid's pretax income after the adjusting entries?
Multiple Choice
$163,000
$162,000
$160,000
$179,000
10.Assume Idaho Company recorded the following adjusting journal entry at year-end:
Account Title Debit Credit
Insurance expense 2,000
Prepaid insurance 2,000
If the beginning balance in prepaid insurance was $500, and $2,500 was paid for an insurance premium during the year, what is the ending balance in the prepaid insurance account after the above adjusting entry?
Multiple Choice
$1,200
$700
$2,200
$1,000

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