Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could use some help with these questions and how you came to the solution, thanks in advance! 4) Smith bought a new automobile on January

Could use some help with these questions and how you came to the solution, thanks in advance!

image text in transcribed

4) Smith bought a new automobile on January 1, 2020 for $30.000 and it is expected to last for 5 years. Smith calculates the annual wear and tear on his automobile to be $6,000. Therefore, his adjusting entry on December 31, 2020 should be: A) Dr. Depreciation Expense-Auto 6,000. Cr. Auto 6,000 B) Dr. Depreciation Expense-Auto 6,000, Cr. Cash 6,000 C) Dr. Depreciation Expense-Auto 6,000. Cr. Accumulated Depreciation-Auto 6,000 D) Dr. Auto Expense 6,000. Cr. Accumulated Depreciation-Auto 6,000 E) Dr. Auto Expense 6,000. Cr. Cash 6,000 5) The unadjusted balance in the Unearned Service Revenue account was $S4.000. An analysis indicated 75% remained unearned. On December 31, 2020 Smith's adjusting entry should be: A) Dr. Unearned Service Revenue 3,000. Cr. Service Revenue 3,000 B) Dr. Unearned Service Revenue 1,000. Cr. Service Revenue 1,000 C) Dr. Unearned Service Revenue 1,000. Cr. Accounts Receivable 1,000 D) Dr. Service Revenue 1,000, Cr. Unearned Service Revenue 1,000 E) Dr. Service Revenue 3,000. Cr. Unearned Service Revenue 3,000 6) Smith did some work for a client on December 31, 2020 and sent out a bill for $500. Smith should make which of the following entries: A) Dr. Cash 500, Cr. Service Revenue 500 B) Dr. Unearned Service Revenue 500. Cr. Service Revenue 500 C) Dr. Cash 500, Cr. Accounts Receivable 500 D) Dr. Accounts Receivable 500. Cr. Unearned Service Revenue 500 E) Dr. Accounts Receivable 500. Cr. Service Revenue 500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Human Resources

Authors: Kelli W. Vito

2nd Edition

0894136941, 978-0894136948

More Books

Students also viewed these Accounting questions