Question 19 (10 points) (continued from the previous question) Which of the following statements are true about the journal entries recorded by your company? (select all that apply. i.e. just one or as many as all of them) On 1/1/X1, a contra-asset account is credited As a consequence of the journal entries recorded on 1/1/X1, net assets increase by 82,645 As a consequence of the journal entries recorded on 1/1/X1. net assets increase by 100.000 A contra-asset is credited 12 months after the service was rendered Cash is debited 12 months after the service was rendered Question 17 (10 points) On 11/1/20 the Gamma Company enters into a contract with a local electricity provider. The annual charge for the electricity is $18,000, to be paid by Gamma to the provider in semiannual installments at the end of every 6 month period. Which of the following statements are true about the journal entries recorded by the two companies? (select all that apply - i.e. just one or as many as all of them) On 12/31/20, both the Gamma Company and the electricity provider debit a balance sheet account for $3,000 On 12/31/20 the electricity provider debits an income statement account for $3,000 On 12/31/20, the electricity provider debits Cash for $3.000 On 4/30/21, the Gamma Company credits Cash for $6,000 On 4/30/21, the Gamma Company credits Cash for $9.000 Question 19 (10 points) (continued from the previous question) Which of the following statements are true about the journal entries recorded by your company? (select all that apply. i.e. just one or as many as all of them) On 1/1/X1, a contra-asset account is credited As a consequence of the journal entries recorded on 1/1/X1, net assets increase by 82,645 As a consequence of the journal entries recorded on 1/1/X1. net assets increase by 100.000 A contra-asset is credited 12 months after the service was rendered Cash is debited 12 months after the service was rendered Question 17 (10 points) On 11/1/20 the Gamma Company enters into a contract with a local electricity provider. The annual charge for the electricity is $18,000, to be paid by Gamma to the provider in semiannual installments at the end of every 6 month period. Which of the following statements are true about the journal entries recorded by the two companies? (select all that apply - i.e. just one or as many as all of them) On 12/31/20, both the Gamma Company and the electricity provider debit a balance sheet account for $3,000 On 12/31/20 the electricity provider debits an income statement account for $3,000 On 12/31/20, the electricity provider debits Cash for $3.000 On 4/30/21, the Gamma Company credits Cash for $6,000 On 4/30/21, the Gamma Company credits Cash for $9.000
