7.Which of the following adjusting entries involves the recognition of an accrued expense? a. recording depreciation on a long-lived asset b. writing off the portion of an insurance policy that has expired c recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period d. recognition of bad debt losses that are expected to result from making sales on credit terms 8.On March 31, 2004, the Tyco Company purchased a two-year fire insurance policy. Tyco recorded the purchase by debiting Prepaid Insurance and crediting Cash for $12,000. Which of the following adjusting entries should Tricot use at the end of 2004 to match insurance expense against revenues? a. Prepaid Insurance 4,500 4500 b. Insurance Expense c. Prepaid Insurance d. Insurance Expense Insurance Expense Prepaid Insurance Insurance Expense Prepaid Insurance 7.500 4500 7,500 7,500 7,500 9.On May 1, 2007, Clinton Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Clinton makes all interest payments on schedule. The correct December 31, 2007, adjusting entry would be a. Interest Expense 25 Interest Payable Cash Cash Interest Payable 25 100 b. Interest Payable c. Interest Expense d. Interest Expense 100 25 25 100 100 10.Posting is the procedure of transferring information from the ajournal to the ledger trial balance to the worksheet ledger to the journal c. d. worksheet to the financial statements 11.0n June 1, 2007, Adam Smith Industries purchased a one-year comprehensive insurance policy and paid the annual premium of $12,000. Which of the following could not result from the acquisition of the insurance coverage on June 1? a. $7,000 of insurance expense for the year ended December 31, 2007 b. a $12,000 debit to Insurance Expense on June 1, 2007 c. $5,000 of prepaid insurance at December 31, 2007 d. a $12,000 credit to Prepaid Insurance on June 1, 2007