On July 1 the Fisher Shoe Store paid $24,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fisher Shoe Store is: A) debit Rent Expense, $4,000; credit Prepaid Rent, $4,000. B) debit Rent Expense, $24,000; credit Prepaid Rent, $4,000. C) debit Rent Expense, $24,000; credit Prepaid Rent, $20,000. D) debit Prepaid Rent, $4,000; credit Rent Expense, $4,000. Failure to prepare an adjusting entry at the end of the period to record an accrued expense would cause: A) an overstatement of assets and an overstatement of liabilities. B) an understatement of expenses and an understatement of liabilities. C) net income to be understated. D) an overstatement of expenses and an overstatement of liabilities. Alpha First Company just began business and made the following four inventory purchases in June: A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the LIFO inventory methode, the value of the ending inventory on June 30 is A) $1, 824 B) $1, 848 C) $1, 508 D) $1, 456 Dividends are reported on the A) retained earnings statement. B) income statement. C) income statement and balance sheet. D) balance sheet