On July 1 of the current calendar year, Plum Co. paid $8,400 cash for management services to be performed over a two-year period beginning July 1. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Plum would include: Multiple Choice A debit to an expense and a credit to a prepaid expense for $6,300. A debit to a prepaid expense and a credit to Cash for $6,300. A debit to an expense and a credit to a prepaid expense for $2,100. A debit to a prepaid expense and a credit to an expense for $2,100. A credit to a liability and a debit to a prepaid expense for $2,100. Prior to recording adjusting entries, the Office Supplies account had a $367 debit balance. A physical count of the supplies showed $109 of unused supplies available. The required adjusting entry is: Multiple Choice Debit Office Supplies $109 and credit Office Supplies Expense S109 Debit Office Supplies Expense $109 and credit Office Supplies $109, Debit Office Supplies Expense $258 and credit Office Supplies $258. Debit Office Supplies $258 and credit Office Supplies Expense $258. Debit Office Supplies $109 and credit Supplies Expense $258 On May 1, a two-year insurance policy was purchased for $16,800 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31? DOK Multiple Choice $700. $4.900 $5,600. $6,300 $16.800 Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1.225. Fragmental collected the entire $9,800 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Rent Revenue and a credit to Cash for $3,675 A debit to Rent Revenue and a credit to Unearned Rent for $3,675. A debit to Cash and a credit to Rent Revenue for $9,800. A debit to Unearned Rent and a credit to Rent Revenue for $3,675, A debit to Unearned Rent and a credit to Rent Revenue for $6,125. A company pays its employees $1,550 each Friday, which amounts to $310 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is: Multiple Choice $1,550 $310 $620 $930 $1,240 A company purchased new furniture at a cost of $26,000 on September 30. The furniture is estimated to have a useful life of 5 years and a salvage value of $3,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31? Multiple Choice $380. $1540 $1,300 $1.460 ja $4,660 wo A roofing company collects fees when jobs are complete. The work for one customer, whose job was bid at $3,400, has been completed as of December 31, but the customer has not yet been billed. Assuming adjustments are only made at year-end, what is the adjusting entry the company would need to make on December 31, the calendar year-end? Multiple Choice Debit Cash, $3,400, credit Roofing Fees Revenue, $3,400. Debit Roofing Fees Revenue, $3,400; credit Accounts Receivable, $3,400. Debit Accounts Receivable, $3,400; credit Roofing Fees Revenue, $3,400, Debit Roofing Fees Revenue, $3,400; Credit Cash, $3,400. No adjustment is required If Regent Tax Services' office supplies account balance on March 1 was $1,050, the company purchased $600 of supplies during th month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31? Multiple Choice $1,700. $400. $1,050 $600. $1,650 9 On December 1, Milton Company borrowed $440,000, at 6% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? eBook Multiple Choice Debit interest Payable, $2,200; credit Interest Expense, $2,200. Debit Interest Expense, $2.200; credit Interest Payable, $2,200. Debit interest Expense, $2,200, credit Cash, $2,200, Debit interest Expense, $4,400; credit interest Payable, $4,400. Debit interest Expense, $26,400, credit interest Payable, $26.400 On September 1, Kennedy Company loaned $132,000, at 9% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? Multiple Choice Debit interest Expense. $11,880; credit Interest Payable, $11.880. Debit interest Expense, $3,960; credit interest Payable, $3,960. Debit interest Receivable, $11,880, Credit Cash, $11,880, Debit interest Receivable, $3.960; credit interest Revenue, $3.960. Debit Cosh, $3,960, credit interest Revenue, $3.960