d$.$ Promote comparability between financial statements of different periods.

$3.$ JME Corporation bills its customers when services are rendered and recognizes revenue at the same time. This event causes an

a$.$ Increase in assets.

b$.$ Increase in net income.

c$.$ Increase in retained earnings.

d$.$ All of the above.

$4.$ Somerset Leasing received $$12,000$ for $24$ months rent in advance. How should Somerset record this transaction?

a$.$ Prepaid rent $,12,000$

Rent expense $,12,000$

b$.$ Cash $12,000$

Unearned revenue

$12,000$

c$.$ Interest expense $,12,000$

Interest payable

$12,000$

d$.$ Salaries expense $12,000$

Salaries payable $12,000$

$5.$ On December $31,2023,$ the end of Larry's Used Cars' first year of operations, the account receivable was $$53,600.$ The company estimates that $$1,200$ of the year$-$end receivables will no be collected. Accounts receivable in the $2023$ balance sheet will be valued at:

a$.$ $$53,600.$

b$.$ $$54,800$

c$.$ $$52,400.$

d$.$ $$1,200$

II$.$ ASSIGNMENT $(75$ marks$)$

Question $1.(50$ marks, $4$ marks per entry and $2$ marks for correct form$)$

Evan Watts, D$.$D$.$S$.,$ opened a dental practice on January $1,2023.$ During the first mon operations, the following transactions occurred.

Watts performed services for patients totaling $$2,400.$ These services have not yet recorded.

The furniture were purchased on account of $$48,000$ on January $1,2013,$ and have an esti useful life of $10$ years with no anticipated salvage value. Depreciation per month is $$400.$

Purchased dental equipment on January $1$ for $$80,000,$ paying $$20,000$ in cash and sig

$ $000$ per month. Interest is $$6$