Q1) Your company receives a $40,000 advance for a $125,000 painting job and you credit Painting Revenue. At year-end, 14% of the job has been completed. If your company uses the accrual basis, what adjusting entry will you record?

a) debit Painting Revenue for $22,500; credit Unearned Painting Revenue for $22,500

b) debit Painting Revenue for $17,500; credit Unearned Painting Revenue for $17,500

c) debit Unearned Painting Revenue for $22,500; credit Painting Revenue for $22,500

d) debit Unearned Painting Revenue for $17,500; credit Painting Revenue for $17,500

Q2) On December 1, an accrual basis company takes on an 18-month job and receives a $10,000 advance that is recorded in Revenue. At year end, 10% of the job has been completed. If no adjusting entry is made at year end, how will the financial statements be affected?

a) net income will be understated; assets will not be affected; liabilities will be overstated

b) net income will be overstated; assets will be overstated; liabilities will not be affected

c) net income will be understated; assets will be understated; liabilities will not be affected

d) net income will be overstated; assets will not be affected; liabilities will be understated

Q3) On September 1, your calendar year company pays $12,000 for 1 years rent; you debit Prepaid Rent for the payment. If your company uses the accrual basis, what adjusting entry will you record on December 31?

a) debit Prepaid Rent for $8,000; credit Rent Expense for $8,000

b) debit Rent Expense for $4,000; credit Prepaid Rent for $4,000

c) debit Prepaid Rent for $4,000; credit Rent Expense for $4,000

d) debit Rent Expense for $8,000; credit Prepaid Rent for $8,000

Please Answer all ( three 3) questions, it is a request that only attempts these if you can answer these three otherwise please don't answer, I am already failing my semester.

Thank You