Part 2: (MC Questions 29 to 54 worth 2 marks each) 29, On March 1, Shogun Corporation borrowed $35,000 from its bank, and signed a 6%, 4- month bank loan. Principal and interest are due on July 1. If Shogun's year end is May 31, the adjusting entry that it should prepare for interest on May 31 would be: a. b. c. d. Debit Interest Expense, $525; credit Interest Payable, $525. Debit Interest Expense, S1,575; credit Interest Payable, $1,575. Debit Bank Loan Payable, $700; credit Cash, $700. Debit Interest Expense, $700; credit Interest Payable, $700 The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000 and represents four months' rent starting on October 1. The adjusting entry required on December 31 is: 30. a. b. c. d. debit Prepaid Rent, $3,000; credit Rent Expense $3,000 debit Prepaid Rent, $9,000; credit Rent Expense, $9,000. debit Rent Expense, $12,000; credit Prepaid Rent, $12,000 debit Rent Expense, S9,000; credit Prepaid Rent, $9,000. Use the following information to answer questions 31 and 32: The following data for Sorensen Company is presente d below: Cash Accounts Payable S 10,200 $24,000 32,760 Mortgage Payable (due 2020 20,000 1,200 6,400 50,000 Accumulated Depreciation100,000 13,440 12,000 Accounts Receivable 17,000 Unearned Revenue 220,000 Temporary Investments Inventory Equipment Long-term Notes Payable Common Shares Prepaid Rent 40,000 Retained Earnings 1,600 Salaries Payable The Mortgage Payable account is long-term in nature. The represents investments made in equity securities that will be sold within 3 months. Temporary Investments account 31. Current assets amount to: a. $59,960 b. $59,200 ($10,200+ $6,400+ $24,000+$17,000 + 1,600) C. $52,800 d. $51,200 32. Current liabilities amount to: a. $65,960 b. $85,960 C. $33,960 d. $45,960 ($32,76012,000 1,200) 33. If a $20,000 sale was made on July 8, 2013 with terms 3/10 net 45, and collection was made on September 20, the amount collected is: a. $19,400 b. $19,600 c. $20,000 (outside discount period) d. $20,600