Edmond Office Equipment borrowed $90,000 at a 5% annual interest rate on July 1. Principal and interest are due on December 31. The company's fiscal year ends on October 31. What adjusting entry should be made on that date? (Do not round intermediary calculations. Only round your final answer to the nearest dollar.) O A. No entry O B. Interest Expense Interest Payable 2,250 2,250 O C. Interest Expense 1,500 Interest Payable 1,500 O D. Prepaid Interest Interest Payable 1,500 1,500 If service revenue is $290,000, total expenses are $175,000, additional capital stock issued of $11,000 and dividends declared are $5,000, what is the change in retained earnings as a result of the closing process? O A. An increase of $6,000 O B. An increase of $110,000 O C. An increase of $5,000 O D. An increase of $290,000 St. Augustine Properties collected advance rentals of $370,000 from its customers during the year. The balance in the unearned rent revenue account increased from $20,000 on January 1 to $39,000 on December 31. Rents earned during the year totaled A. $351,000 O B. $409,000 O C. $390,000 O D. $389,000 Are the identified measurement bases consistent with fair value reporting? O A. Current market value Net realizable value No Yes O B Net realizable value Current market value No No O C. Current market value Net realizable value Yes No O D. Current market value Net realizable value Yes Yes QuestionTTIeip Why is a conceptual framework of accounting necessary and justifiable? O A. A conceptual framework of accounting is necessary and justifiable because it allows companies to disclose changes in their financial statements without consequences. O B. A conceptual framework of accounting is needed to ensure that accounting standards don't change from year to year. Consistency in financial reporting is more important than accuracy in reporting. O C. Awell-developed conceptual framework is needed to ensure that a set of accounting standards is coherent and uniform. In order to avoid redundancy, standard setters refer to the framework only when deciding to issue a new standard or standards. O D. Awell-developed conceptual framework is needed to ensure that a set of accounting standards is coherent and uniform. Thus, standard setters refer to the framework when developing and revising accounting standards. In this way, the individual standards are consistent and supported by the framework