Please choose the correct answers; otherwise don't answer. Thank you!

1. A company pays one year of rent in advance on January 1. On January 31, the company will record an adjusting entry that will:

Multiple Choice

• Increase assets and increase expenses

• Increase assets and decrease expenses

• Decrease assets and increase expenses

• Decrease assets and decrease expenses

2. Depreciation on a companys equipment for the year is $6,000. The adjusting entry for depreciation is recorded as:

Multiple Choice

• Debit Accumulated Depreciation $6,000, Credit Depreciation Expense $6,000

• Debit Depreciation Expense $6,000, Credit Accumulated Depreciation $6,000

• Debit Depreciation Expense $6,000, Credit Cash $6,000

• Debit Depreciation Expense $6,000, Credit Equipment $6,000