On April 1, a company takes on an 18-month job and receives a $10,000 advance that is recorded in Revenue. If no adjusting entry is made at year-end, how will the financial statements be affected? Net income Assets Liabilities 1. overstated 2. overstated 3. understated 4. understated not affected overstated not affected understated understated not affected overstated not affected O2 O1 O 3 4 Question 3 2 pts On April 1, a company takes on an 18-month job and receives a $10,000 advance that is recorded in Unearned Revenue. If no adjusting entry is made at year-end, how will the financial statements be affected? Net income Assets Liabilities 1. overstated 2. overstated 3. understated 4. understated not affected overstated not affected understated understated not affected overstated not affected 03 O2 O4 O1 Question 4 2 pts If a company receives a December electric bill for $1,000 and decides to pay it in January: 1. no adjustment is required 2. the company must record a journal entry that debits Utilities Expense and credits Utilities Expense Payable 3. the company must record a journal entry that debits an asset account and credits an expense account 4. none of the above 03 02 04 O1 Question 5 2 pts Your company has a 5-day workweek and a weekly payroll of $35,000 that it distributes each Friday. When an accounting period ends on a Thursday, which of the following entries will you record? a. Salary Payable 14,000 Salary Expense 14,000 b. Salary Expense 14,000 Salary Payable 14,000 C. Salary Payable 28,000 Salary Expense 28,000 d. Salary Expense 28,000 Salary Payable 28,000 On August 1, your company takes a $10,000 note that requires your firm to repay principal and accrued interest of 8% a year at the end of 4 years. Which entry should you record at the end of this year? a. Interest Expense 800 Cash 800 b. Interest Expense 333 Interest Payable 333 c. Interest Expense 800 Interest Payable 800 d. Interest Expense 467 Interest Payable 467 Ob Od Question 7 2 pts On November 1, 20X4, you record a $20,000 note receivable, debiting Cash and crediting Notes Payable. The note matures on May 1, 20X5 when the principal and accrued interest of 6% a year is due. On December 31, 20X4, your adjusting entry for accrued interest will include: 1. a debit to Interest Payable for $400 2. a debit to Interest Expense for $200 3. a credit to Interest Payable for $400 4. none of the above