A Company purchased a computer for $4,800 on December 1. It is estimated that annual depreciation on the computer will be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: *

Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960

Debit Depreciation Expense, $80; Credit Accumulated Depreciation, $80

Debit Depreciation Expense, $3,840; Credit Accumulated Depreciation, $3,840

Debit Office Equipment, $4,800; Credit Accumulated Depreciation, $4,800

None of the above

If business pays rent in advance and debits a Prepaid Rent account, the company receiving the rent payment will credit: *

Cash

Prepaid rent

Unearned rent revenue

Accrued rent revenue

None of the above

Key Company collected $6,500 on October 1 of 2018 for 5 months of service which would take place from October of 2018 through February of 2019. The revenue reported from this transaction at the end of the 2018 adjusting entry would be: *

$0

$3,900

$6,500

$2,600

None of the above

A Company purchased computer equipment on May 1, 2019 for $4,500. The company expects to use the equipment for 3 years. It has no salvage value. If financial statements are to be prepared on monthly basis, the company should make the following adjusting entry: *

Debit Depreciation Expense, $125; Credit Accumulated Depreciation, $125

Debit Depreciation Expense, $1,500; Credit Accumulated Depreciation, $1,500

Debit Depreciation Expense, $1,000; Credit Accumulated Depreciation, $1,000

None of the above

DEXTER Company received a check for $18,000 on July 1, 2019 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent was credited for the full $18,000. Financial statements will be prepared yearly. Baden should make the following adjusting entry on December 31, 2019: *

Debit Unearned Rent Revenue, $3,000; Credit Rent Revenue, $3,000

Debit Rent Revenue, $3,000; Credit Unearned Rent Revenue, $3,000

Debit Unearned Rent Revenue, $18,000; Credit Rent Revenue, $18,000

Debit Cash, $18,000; Credit Rent Revenue, $18,000

None of the above

White Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is: *

Debit Laundry Supplies Expense, $2,000; Credit Laundry Supplies, $2,000

Debit Laundry Supplies, $2,000; Credit Laundry Supplies Expense, $2,000

Debit Laundry Supplies, $4,500; Credit Laundry Supplies Expense, $4,500

Debit Laundry Supplies Expense, $4,500; Credit Laundry Supplies, $4,500

None of the above

A Company issued a one-year, 9%, $200,000 note on June 1, 2019. Interest expense for the year ended December 31, 2019 was: *

$18,000

$13,500

$12,000

$10,500

None of the above

At December 31, 2019, before any year-end adjustments, Karr Company's Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $3,000 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be: *

$3,000

$1,450

$4,450

$800

None of the above

A Company has performed $500 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must the company make?

Debit Cash and credit Unearned Revenue $500

Debit Accounts Receivable and credit Service Revenue $500

Debit Unearned Revenue and credit Service Revenue $50

None of the above

A Company purchased an 18-month insurance policy on May 31, 2019 for $3,600. The December 31, 2019 balance sheet would report Prepaid Insurance of: *

$0 because Prepaid Insurance is reported on the Income Statement $1,400.

$2,200

$3,600

None of the above