On September 1 of the current year, Prepaid Rent was debited $6,000 for 6 months of rent, in advance. The amount of the adjusting entry on December 31 is? $6,000. $0. $2,000. $4,000. On November 1 of the current year, Stella Simon received $5,400 for legal services to be performed evenly throughout the next 12 months. The adjusting entry on December 31 of the current year would include a? debit to Unearned Service Revenue for $5,400. credit to Unearned Service Revenue $900. debit to Service Revenue $5,400. credit to Service Revenue $900. If a bookkeeper mistakenly recorded a $63 deposit as $36, the error would be shown on the bank reconciliation as a $36 deduction from the book balance. $36 addition to the book balance. $27 deduction from the book balance. $27 addition to the book balance. . (TCO 5) On the bank reconciliation, an NSF check is (Points : 5) deducted from the bank balance. added to the bank balance. deducted from the book balance. added to the book balance. Question 11.11. (TCO 6) The use of the allowance method of accounting for bad debts is preferred over the direct write-off method because of the (Points : 5) matching principle. historical cost principle. revenue recognition principle. full disclosure principle. Question 12.12. (TCO 6) Under the allowance method for estimating uncollectible accounts, the entry to write off an account (Points : 5) has no effect on net realizable value. decreases both Accounts Receivable and Uncollectible Accounts, thus decreasing net realizable value. decreases Accounts Receivable, thus decreasing net realizable value. increases Allowance for Uncollectible Accounts, thus decreasing net realizable value. Question 13.13. (TCO 1) Assets appear on the (Points : 5) balance sheet. retained earnings statement. income statement. statement of cash flows. Question 14.14. (TCO 1) The income statement (Points : 5) may cover a period of time or only 1 day in time, like a snapshot photograph. covers a defined period of time. is not dated. reports the results of operations since the inception of the business. Question 15.15. (TCO 2) Accounting transactions are initially recorded in the (Points : 5) book. source document. journal. ledger