Entity N's employees work a five-day workweek and the total weekly payroll (paid on Fridays) is $6,000. March 31, 2021 in on Wednesday. If the proper monthly adjusting entry is not made, O Net income will be correct because no cash has been paid to the employees. O Current liabilities will be overstated. O Net income will be overstated. O Net income will understated. QUESTION 13 Entity E had the following information available: Accounts payable 110,000 Accounts receivable 80,000 Accumulated depreciation, buildings 40,000 Buildings 220,000 Cash 100,000 Common stock 240,000 lot Inventory 140,000 Land (underneath buildings) 310,000 Mortgage payable (due 2031) 180,000 Prepaid insurance 60,000 Salaries payable 20,000 Trademarks 180,000 Retained earnings (ending) 500,000 On the classified balance sheet, what is the amount for total current assets? O $130,000 O $1,050,000 O $380,000 O $870,000 Entity K purchased a two year insurance policy on January 1 for $10,000 and recorded the purchase as an asset. On June 30. Entity K will make its first adjusting entry concerning this transaction. Which entry will it make? O Dr. Prepaid Insurance 10,000 Cr. Cash 10,000 O Dr. Insurance expense 10,000 Cr. Cash 10,000 O Dr. Insurance expense 2,500 Cr. Prepaid Insurance 2,500 O Dr. Prepaid Insurance 7,500 Cr. Insurance Expense 7,500 QUESTION 15 Under the cash basis of accounting O Expenses must be matched against the revenue produced. O Expenses are recognized only when incurred. O Cash must be received before revenues are recognized Revenues are recognized only when performance obligations are satisfied. QUESTION 16 Entity I purchased office equipment for $2,000, paying $700 down and the rest on account. The entry to record this transaction: O includes two debits to Equipment O is a compound entry. O requires two pairs of entries, one for the down payment and one for the cash o includes debit to Cash and Accounts Payable