Enable Editing Use the following to answer questions 5-6 Following is a February transaction for a company. Calculate the amount of expense to recognize in February Paid $1,000 in February for supplies purchased on account last month. Used $450 worth in February, $300 was used last month and $250 of the supplies are still on hand. 5. 6. Accrual basis expense: $ Cash basis expense: Use the following to answer 7-8 Following is a February transaction for a company. Calculate the amount of revenue to recognize in February. In February the company received $30,000 cash from customers for services; $20,000 was provided this month and $10,000 is to be provided next month 7. Accrual basis revenue: $ 8. Cash basis revenue: $ Use the following to answer questions 9 - 10 On November 1st, the company received a $50,000 payment from a customer for services to be rendered evenly over the next five months. Deferred Revenue was credited on November 1st and no other entries regarding this transaction were made until December 31st. 9. $ After the adjusting entry has been recorded on December 314, determine the ending balance in the deferred revenue account that should be recorded on the December 31st Balance Sheet 10. $ After the adjusting entry has been recorded on December 31st, determine the amount of service revenue that should be recognized for this customer on the annual income statement on December 31st. Use the following to answer questions 11-12 On September 1" the company borrows $1,000,000 from a local bank for nine months. A note is signed with principal and 3% interest to be paid when the note matures next year. A note payable was recognized on September 1st and no other entries regarding this transaction were made December 31st. 11. $ In the adjusting entry recorded on December 31" determine the amount of interest expense that should be reported. 12. What effect would failure to record the adjusting entry for this note payable have on the financial statement items? A. would cause it to be overstated B. would cause it to be understated C. would have no effect Assets Liabilities Stockholders' Equity Revenue Expenses Net income Enable Editing se the following to answer questions 13-14 he company incurs employee salaries of $75,000 for the last week of December which will be paid on January 5th. 3. Record the adjusting entry on December 31st related to the employee salaries Account Debit Credit $ Indicate by how much net income in the income statement is higher or lower if the adjustment in #13 is not recorded (if lower put"_" in front of your answer). e the following to answer questions 15-16 October 1st, the company pays a local radio station $100,000 for 500 radio ads that were to be aired, 100 per month, throughout October through February. Prepaid Advertising was debited on October 1st and no other entries regarding this transaction were made since then. $ After the adjusting entry has been recorded on December 31%, determine the amount of advertising expense for the year ended December 31st S After the adjusting entry has been recorded on December 31st, determine the ending balance in the prepaid advertising account that should be recorded on the December 31st Balance Sheet