Questions 2-6

ADJUSTING ENTRIES 153 2. The unadjusted trial balance amount for Insurance Expense (a temporary account) on Decem- The Insurance policy was purchased on August 1, 2011 and is ber 31, 201I, was $3,600. effective for 12 months starting on that date. The required adjusting entry on December 31 2011 would require a Credit to (Account Title) (Amount) For $ 3. On May 20, 2011 Sue Company completes consulting services for a client and bills the lient on account for $30,000. On June 5, 2011, the client makes a partial payment of $20,000 to Sue Company for the amount due on account. On June 5, 2011, Sue Company should credit For S(Amount) (Account Title) 4. On May 1, 2010 Jim Company purchases for cash a new delivery truck to be used in the business for S3800The truck has an estimated residual value of $2.000 and an expected life of 4 years. On December 31, 2011, the adjusting entry to record depreciation for the year 2011 would require a Credit to For $ --(Account Title) Amount) 5. If Frank Corporation sells 100,000 shares of its new $1 par value common stock to investors for 8I per share on June 1, 2011, the required journal entry would require: Debit to Credit to (Account Title) (Account Title) 6. Total revenues for Alice Company over a three year period (in millions) were: 2010 56,000 2011 $ 67,200 2012 $ 89,600 The percentage increase in revenues from 2010 to 2011 is The percentage increase in revenues from 2010 to 2012 is