Please answer all questions with explanations. Thank you! 400 400 Prepaid insurance 400 QUESTION 17 1. Which of the following would not be considered an adjusting entry? A) Supplies expense 400 Supplies 400 CA Above. B) Depreciation expense Accumulated depreciation 400 CB Above. C) Wage expense C C Above Cash 400 CD Above. D) Insurance expense QUESTION 18 1. Gordy's Corp. has seven employees. Each earns $800 per week for a five day work week ending on Friday. This month, the last day of the month falls on a Thursday. The company should make an adjusting entry: Crediting Wage Expense for $640 and debiting Wages Payable for $640. Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. C Crediting Wage Expense for $4,480 and debiting Wages Payable for $4,480. Debiting Wage Expense for $640 and crediting Wages Payable for $640. QUESTION 19 Refer to the information below. How much is owed the employees for their wages? Gamma Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31: (1) A one-year bank loan of $720,000 at an annual interest rate of 6% had been obtained on December (2) The company's pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. Employees earn a total of $12,800 per week. (3) On December 1, rent on the office building had been paid for three months. The monthly rent is $7,000. (4) Depreciation of office equipment is based on an estimated useful life of five years. The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year. (5) All fees totaling $19,800 were earned during the month $0 C $2,560 C $5,120 C $12,800 QUESTION 20 1. The purpose of making closing entries is to: C Reduce the number of expense accounts. C Enable the accountant to transfer the balances from all permanent accounts to the Income Summary account. Establish new balances in the balance sheet accounts. Prepare revenue and expense accounts for the recording of the next period's revenue and expenses