Karla Corporation's salaries expense 2016, was $136,000. Accrued salaries payable on December 31, 2016, was $17,800 and $8,400 on December 31, 2015. The cash paid for salaries during 2016 was a. $145,400 b. $153,800 c. $126,600. d. $127,600 Arkansas Company sublet a portion of its office space for ten years at an annual rental of $36,000, beginning on May 1. The tenant is required to pay one year's rent in advance, which Arkansas recorded as a credit to Rental Income. Arkansas reports on a calendar-year basis. The adjustment on December 31 of first year should be Glamour Inc. paid $12,960 for a four-year insurance policy on September 1 and recorded the $12,960 as a debit to Prepaid Insurance and a credit to Cash. What adjusting entry should Ingle make on December 31, the end of the accounting period? Adjusting entries normally involve a. liability accounts only. b. real accounts only c. nominal accounts only d. real and nominal accounts On March 1,2015, Snow Co. borrowed cash and signed a 36-month, interest-bearing note on which both the principal and interest are payable on February 28, 2018. At December 31, 2017, the liability for accrued interest should be a. 22 months' interest b. 10 months' interest c. 36 months' interest d. 34 months' interest. Which of the following criteria must be met before an event should be recorded for accounting purposes? a. The event must be disclosed in the reported footnotes. b. The event must be repeatable in a future period. c. The event must be measurable in financial terms. d. The event must be an arm's-length transaction