Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help on the mutiple choice questions below The accountant for Lily's Emporium, Inc. prepared the following trial balance at December 31, 2021: Debit Credit
please help on the mutiple choice questions below The accountant for Lily's Emporium, Inc. prepared the following trial balance at December 31, 2021: Debit Credit Cash 5,700 Accounts Receivable 2,500 Notes Receivable 2,000 Supplies 600 Equipment 18,000 Unearned Consulting Fees 3,300 Capital Stock 15,600 Retained Earnings, January 1, 2021 0 Dividends 3,300 Consulting Fees Earned 26,800 Insurance Expense 2,100 Salaries Expense 7.700 Utilities Expense 1,700 Rent Expense 2.100 $45.700 $45,700 Additional information items: a The Note Receivable is a 8%, 5-month note dated November 1, 2021 b A count of the Supplies on December 31, 2021 shows $150 in supplies on hand, The Insurance Expense is for a 12-month policy, paid on October 1, 2021 d The equipment has a life of 7 years, was purchased on May 2021, and Lilly will use the straight-line method of recording depreciation. Lily expects that the equipment will have a $500 salvage value. Consulting Fees Earned includes a $1,200 prepayment by a client on June 30, 2021 for consulting services to be rendered for twelve months e The adjusting entry required with respect to the Insurance would be (from (c) above) O A deferral with a credit to Insurance Expense for $525. A deferral with a debit to Insurance Expense for $525. A deferral with a credit to Insurance Expense for $1,575. A deferral with a debit to Insurance Expense for $1,575. The amount of Depreciation Expense that Lily would record in its adjusting entries would be $2,500 $208 $1,042 $1,667 The adjusting entry required with respect to Consulting Fees would be (from (e) above): A deferral with a debit to Consulting Fees Earned of $1,200. A deferral with a credit to Consulting Fees Earned of $600. A deferral with a debit to Unearned Consulting Fees of $600. A deferral with a debit to Consulting Fees Earned of $600. The adjusting entry required with respect to Supplies would be (from (b) above): A deferral with a credit to Supplies Expense for $450. A deferral with a debit to Supplies Expense for $150. A deferral with a credit to Supplies Expense for $150. A deferral with a debit to Supplies Expense for $450. Which of Lily's adjusting entries are REQUIRED to be reversed? Supplies and Depreciation Interest Insurance and Consulting Fees Supplies, Insurance, and Consulting Fees The adjusting entry required with respect to the Note Receivable would be (from (a) above): An accrual of $64 in Interest Revenue. An accrual of $27 in Interest Revenue. A deferral of $64 in Interest Revenue. A deferral of $27 in Interest Revenue
please help on the mutiple choice questions below
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started