At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following is true? Othe balance sheet and income statement will be misstated but the statement of stockholders' equity will be correct for the current year Ototal assets will be understated at the end of the current year Ototal liabilities and total assets will be understated Onet income will be overstated for the current year Calculator Which of the following is an example of a prepaid expense? OSupplies Ounearned Subscriptions OUnearned Fees OAccounts Receivable Calculator The unexpired insurance at the end of the fiscal period represents Oan accrued asset O. an accrued expense Oan accrued liability Oa deferred expense Calculator If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a(n) Odeferral O dividend Oaccrual Orevenue Calculator The type of account and normal balance of Prepaid Insurance is Oasset, debit Ocontra asset, credit Ocontra asset, debit asset, credit The balance in the office supplies account on January 1 was $7,000, supplies purchased during January were $3,000, and the supplies on hand at January 31 were $2,000. The amount to be used for the appropriate adjusting entry is O$4,300 Os5,000 Os8,000 O$12,000 Prepaid expenses have Oa. been recorded as expenses and paid Ob. not yet been paid but recorded as expenses Oc. not yet been paid nor recorded as expenses Od. not yet been recorded as expenses but have been paid A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assume the next pay period begins on Monday, December 30, and the proper adjusting entry is journalized at the end of the fiscal period (December 31). The entry for the payment of the payroll on Friday, January 10, includes a Ocredit to Salaries Payable of $16,000 Ocredit to Salaries Payable of $4,000 O debit to Salary Expense of $16,000 Odebit to Salary Expense of $4,000