ABC Company has the following accounts and normal balances. Cash $4,000, Accounts Receivables $8,000, Allowance for Doubtful Accounts $500, Accounts Payable $2,500, Unearned Revenue $4,000, Revenue $9,000, Rent Expense $1,000, Wage Expense $4,000 and Capital of $1,000. Use this information to answer questions 1 4.

1. The debit column of the trial balance would equal:

$17,000

$16,000

$17,500

$19,000

2. Assuming no adjusting journal entries are made, Net Income would equal:

$18,000

$15,000

$7,000

$4,000

3. At year end, if we performed 50 percent of the work contracted for that was previously recorded s unearned revenue, what adjusting journal entry should be made at year end?

Debit cash $2,000 and credit unearned revenue for $2,000.

Debit cash $2,000 and credit revenue for $2,000.

Debit unearned revenue $2,000 and credit revenue for $2,000.

Debit unearned revenue $4,000 and credit revenue for $4,000.

4. At the time we prepared financial statements as of 12/31/XX, we owed our employees $950. We would not actually pay the wages until the following week at a total cost of $1,500. Based on this information, what adjusting journal entry should be made?

a.None, as the payment would occur in the following financial period.

b.Debit wage expense and credit cash for $950.

c.Debit wage expense and credit cash for $1,500.

d.Debit wage expense and credit wages payable for $950.