On April 30, 2016, Rudolph Inc. purchased a three-year insurance policy with a cash payment of $ 19,800. Coverage began immediately.

What is the amount of Insurance Expense relating to this insurance policy that will be reported for the year ended December 31, 2016?

$8,800

$2,200

$4,400

$6,600

Three months of rent were prepaid on May 1 for $7,200, but two months have now expired, leaving only one month prepaid at June 30. What is the amount of rent expense that will be recorded in the related adjusting entry dated June 30?

$0

$2,400

$4,800

$7,200

A company pays salaries and wages every two weeks. Salaries and wages amount to $100 a day and the company has a seven-day work week. On March 31, the company pays wages for the two weeks ending March 24 and recorded the related journal entry. The adjusting journal entry, dated March 31, to record unpaid wages and salaries owed since March 25 will include a debit to:

Salaries and Wages Payable and a credit to Salaries and Wages Expense for $1,400.

Salaries and Wages Expense and a credit to Salaries and Wages Payable for $700.

Salaries and Wages Payable and a credit to Cash for $700.

Salaries and Wages Expense and a credit to Salaries and Wages Payable for $1,400.

On December 31, 2015, interest of $500 is owed on a bank loan that will not be paid until June 30, 2016. What is the necessary adjusting journal entry on December 31, 2015?

Debit Interest Expense and credit Cash for $500

Debit Interest Expense and credit Interest Payable for $500

Debit Interest Payable and credit Interest Expense for $500

Debit Interest Receivable and credit Interest Revenue for $500

Wiggly Pet Store had $6,000 of supplies at the end of October. During November, the company bought $2,000 of supplies. At the end of November, the company had $1,000 of supplies remaining. Which of the following statements is not correct?

During November, the company used $7,000 of supplies.

Supplies should be reported at $1,000 on the balance sheet.

An expense should be debited for $7,000 in November.

An asset should be debited for $1,000 in November.