Question
Fortress Company paid $1200 on October 1, 2009 for one year of virus protection. The following journal entry was made: 10/1/09 Prepaid Software Service 1,200
Fortress Company paid $1200 on October 1, 2009 for one year of virus protection. The following journal entry was made:
10/1/09 Prepaid Software Service 1,200
Cash 1,200
The December 31, 2009 adjusting entry is
A. | debit Prepaid Software Service and credit Software Service Expense. $900 | |
B. | debit Software Service Expense and credit Prepaid Software Service, $300. | |
C. | debit Software Service Expense and credit Prepaid Software Service, $900. | |
D. | debit Prepaid Software Service and credit Software Service Expense, $300. |
rchased equipment on credit. Which of the following describes the effect of the transaction on the elements of the accounting equation.
A. | it decreases total assets but not stockholders equity | |
B. | it decreases total assets and stockholders equity | |
C. | it increases total assets and stockholders equity | |
D. | it increases total assets but not stockholders equity |
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