Remaining Time: 1 hour, 07 minutes, 45 seconds. Question Completion Status: $15,000 $10,000 $5,000 QUESTION 36 On December 15, 2019, ABC Corp records cash received for services to be providedin 2020 with a debit to Cash and a credit to Service Revenue. What is the impact on net income for the years ending December 31, 2019 and 2020? Net income will be overstated in 2019 and overstated in 2020 Net income will be overstated in 2019 and understated in 2020 Net income will be understated in 2019 and understated in 2020 Net income will be understated in 2019 and overstated in 2020 Net income will be correct in 2019 and 2020 W QUESTION 37 On January 1, 2021, Rocket Rentals purchased $100.000 face value of Zues Company bonds at a premium of $5,000. The Zues bonds pay 7% interest but were purchased when the market interest rate was 6% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rocket accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. On June 30, 2021. Rocket would record a credit to interest revenue of: $3,150 $3,000 $3,500 $3,675. QUESTION 38 On July 1, 2021, Markwell Company acquired equipment. Markwell paid $160,000 in cash on July 1, 2021, and signed a $640,000 noninterest-bearing Acti Click Save and Submit to save and submit. Click Save All Answers to save all answers, Go to Save All Answers Close Window