Question
NEED ANSWERS ASAP Question 29 Pixies Inc. pays its rent of $54,000 annually on January 1. If the February 28 monthly adjusting entry for prepaid
NEED ANSWERS ASAP
Question 29
Pixies Inc. pays its rent of $54,000 annually on January 1. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following will be true?
Failure to make the adjustment does not affect the February financial statements. | ||
Expenses will be overstated by $4,500 and net income and stockholders' equity will be understated by $4,500. | ||
Assets will be overstated by $9,000 and net income and stockholders' equity will be understated by $9,000. | ||
Assets will be overstated by $4,500 and net income and stockholders' equity will be overstated by $4,500. |
3 points
Question 30
Southeastern Louisiana University sold season tickets for the current year football season for $160,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30
will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $53,333. | ||
will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $60,000. | ||
will include a debit to Cash and a credit to Ticket Revenue for $40,000. | ||
is not required. No adjusting entries will be made until the end of the season in November. |
3 points
Question 31
At March 1, Minutemen Corp. had supplies on hand of $500. During the month, Minutemen purchased supplies of $1,200 and used supplies of $1,500. The March 31 adjusting journal entry should include a
debit to the supplies account for $1,500. | ||
credit to the supplies account for $500. | ||
debit to the supplies account for $1,200. | ||
credit to the supplies account for $1,500. |
3 points
Question 32
Clark Real Estate signed a four-month note payable in the amount of $8,000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is
$80. | ||
$240. | ||
$60. | ||
$720. |
3 points
Question 33
Sebastian Belle has performed $2,000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Sebastian make?
Debit Cash and credit Unearned Service Revenue | ||
Debit Accounts Receivable and credit Unearned Service Revenue | ||
Debit Accounts Receivable and credit Service Revenue | ||
Debit Unearned Service Revenue and credit Service Revenue |
3 points
Question 34
Trent Tables paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. There are three more working days in January (2931). Employees work 5 days a week and the company pays $900 a day in wages. What will be the adjusting entry to accrue wages expense at the end of January?
No adjusting entry is required. | |||||||||
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