eveides and ah understatement of assets. 9. Reversing entries are 1. normally prepared for prepaid, accrued, and estimated items. 2. necessary to achieve a proper matching of revenue and expense 3. useful in simplifying the recording of transactions i the next accounting period. a. b. 2 c, 3 d. 1 and2 o. Pappy Corporation received cash of $36,000 on September 1, 2017 for one year's rent in advance a recorded the transaction with a credit to Unearned Rent Revenue. The December 31, 2017 adjust entry is a. debit Rent Revenue and credit Unearned Rent Revenue, $12,000. b. debit Rent Revenue and credit Unearned Rent Revenue, $24,000. C. debit Unearned Rent Revenue and credit Rent Revenue, sf 2,000. d. debit Cash and credit Unearned Rent Revenue, $24,000. . Starr Corporation loaned $600,000 to another corporation on December 1, 2017 and received a 3-mo 8% interest-bearing note with a face value of $600,000. What adjusting entry should Starr make December 31, 2017? . Debit Interest Receivable and credit Interest Revenue, $12,000 b. Debit Cash and credit Interest Revenue, $4,000. c. Debit Interest Receivable and credit Interest Revenue, $4,000. d. Debit Cash and credit Interest Receivable, $12,000. Big-Mouth Frog Corporation had revenues of $330,000, expenses of $200,000, and dividends of $4S When Income Summary is closed to Retained Earnings, the amount of the debit or credit to Ret Earnings is a a debit of $85,000. b. debit of $130,000. c. credit of $85,000. d. credit of $130,000. At the end of 2017, Drew Company made four adjusting entries for the following items 1. Depreciation expense, $25,000. 2. Expired insurance, $2,200 (originally recorded as prepaid insurance.) 3. Interest payable, $6,000. 4. Rent receivable, $10,000 he normal situation, to facilitate subsequent entries, the adjusting entry or entries that may be rev (are) a. Entry No. 3 only b. Entry No. 4 only c. Entry No. 3 and No. 4 d. Entry No. 2, No. 3 and No. 4