On October 31, 2021, X Company paid $36,000 cash for insurance services to be received in the last two months of 2021. The entry to record this transaction would include: *

A debit to Unearned Service Revenue of $36,000

A credit to Prepaid Insurance of $36,000

A credit to Cash of $36,000

None of the above

On October 1, 2021, the owner invested $36,000 cash to start his business X Company. During this month, the company performed services revenue of $15,000 out of which 65% were collected in cash. During this month also, the company received and paid $18,000 utilities bill and the owner withdrew $9,000 cash for personal use. Assuming no other transactions impacted the cash account, what is the balance in Cash on October 31, 2021? *

$18,750 debit

$21,750 credit

$32,250 debit

None of the above

On November 1, 2021, X Companys balance in Accounts Receivable was $46,000 and in Service Revenue was $830,000. During November, the company rendered service revenue to customers for $80,000, out of which $26,000 were on account. During November also, the company collected $30,000 of the account receivable. Assuming no other transactions impacted the two accounts mentioned above account, what is the balance in Service Revenue on November 30, 2021? *

$884,000 credit

$880,000 credit

$910,000 credit

None of the above

On October 31, 2021, X Sole proprietorship paid $15,000 as Octobers salaries to its employees. This transaction would: *

Increase owners equity by $15,000

Increase the balance in Salaries and Wages Expense by $15,000

Decrease the balance in Salaries and Wages Expense by $15,000

None of the above

Which of these is generally an example of an extraordinary item? *

The loss incurred because of a strike by employees

The gain or loss on disposal of a business segment

The loss from an unusual and infrequent hurricane

None of the above

Which of the following is not a selling expense? *

Advertising expense

Office salaries expense

Freight-out

None of the above