***PLEASE ANSWER ALL QUESTIONS***

1) Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2021 and charged the $4,200 premium to Insurance expense. At its December 31, 2021, year-end, Yummy Foods would record which of the following adjusting entries?

A)

Insurance expense 875

Prepaid insurance 875

B)

Prepaid insurance 875

Insurance expense 875

C)

Insurance expense 875

Prepaid insurance 3,325

Insurance payable 4,200

D)

Prepaid insurance 3,325

Insurance expense 3,325

2) The employees of Persoff Publications work Monday through Friday. Every other Friday the company issues payroll checks totaling $640,000. The current pay period ends on Friday, July 3. Persoff Publications is now preparing financial statements for the fiscal year ended June 30. What is the adjusting entry to record accrued salaries at the end of June?

3) Permanent accounts do not include:

A) Cost of goods sold.

B) Inventory.

C) Current liabilities.

D) Accumulated depreciation.

4) The following information is provided for a company. All liabilities are due to be satisfied within one year unless stated otherwise.

Retained earnings $ 52,000

Supplies 37,000

Equipment 72,000

Accounts receivable 9,000

Deferred revenue 6,000

Accounts payable 15,000

Common stock 25,000

Notes payable (due in 18 months) 35,000

Interest payable 7,000

Cash 22,000

What is the amount of current liabilities?

A) $63,000.

B) $28,000.

C) $46,000.

D) $22,000.