Hi, I have some questions about financial accounting. I want to know the detailed solutions to these following questions.

1.Which of the following accounts would normally have a credit balance?

a)Salary expense

b)Building

c)Accumulated depreciation

d)Prepaid expense

2.On June 5, 20x3, Logan Ltd. sold merchandise inventory to a customer for $42,000, on credit. The cost of the inventory to Logan was $36,000. What is the effect of this business transaction on the accounting equation of Logan?

a)Assets increase $42,000, liabilities do not change, and equity increases

$42,000

b)Assets increase $6,000, liabilities decrease $6,000, and equity increases

$6,000

c)Assets increase $6,000, liabilities do not change, and equity increases $6,000

d)Assets increase $78,000, liabilities decrease $36,000, and equity increases

$42,000

3.How would a transaction that increases an asset and increases revenue be recorded? a) Debit the asset and credit the revenue

b) Debit the asset and debit the revenue

c) Credit the asset and debit the revenue

d) Credit the asset and credit the revenue

4.A company has earned, but has not accrued, revenue of $6,120 at its June 30, 20x3 year end. What would be the effect on the company?s income statements for the year ended June 30, 20x3 if the correct adjusting entry for accrued revenue is not made?

a)Operating income understated by $6,120, no effect on assets, and liabilities understated by $6,120

b)Operating income understated by $6,120, assets understated by $6,120, and no effect on liabilities

c)Operating income overstated by $6,120, assets overstated by $6,120, and no effect on liabilities

d)Operating income overstated by $6,120, assets understated by $6,120, and no effect on liabilities

5.Ring Company records the purchase of office supplies in the office supplies (asset) account. At each month end, the balance in the office supplies account is adjusted to the actual amount based on a physical inventory count. The March 31, 20x3 adjusted balance in the office supplies account was $4,600. During April 20x3, $2,300 of office supplies were purchased. The physical inventory count at April 30, 20x3 showed $3,900 of office supplies on hand. What adjusting journal entry would Ring make at April 30, 20x3 to properly report office supplies on hand?

a)Office Supplies 2,300

Cash 2,300

b)Office supplies expense 6,900

Office Supplies 6,900

c)Office supplies expense 3,000

Office Supplies 3,000

d)Office Supplies 3,000

Office supplies expense 3,000

The September 30, 20x2 unadjusted trial balance of Lipper Company showed a credit balance of $47,000 in the unearned revenue account. Of this amount, $17,000 had still not been earned at September 30, 20x2. Which of the following would be the correct September 30, 20x2 adjusting journal entry with respect to unearned revenue? a) Uneamed Revenue 30,000 Revenue 30,000 b) Uneamed Revenue 17,000 Revenue 17,000 c) Revenue 30,000 Uneamed Revenue 30,000 (1) Cash 17,000 Revenue 17,000 At March 31, 20x3, the unadjusted trial balance of JL Company has a debit balance of $12,000 in the prepaid rent account. At March 31, 20x3, $9,000 of the balance in the prepaid rent account had not been used. JL prepares adjusting journal entries monthly. Which of the following would be the correct monthly adjusting journal entry at March 31, 20x3, with respect to this prepaid rent? a) Prepaid Rent 3,000 Rent expense 3,000 b) Rent expense 9,000 Prepaid Rent 9,000 c) Cash 9,000 Prepaid Rent 9,000 (1) Rent expense 3,000 Prepaid Rent 3,000