Testbank Multiple Choice Question 86

Bonita Industries recorded journal entries for the issuance of common stock for $206000, the payment of $66000 on accounts payable, and the payment of salaries expense of $103500. What net effect do these entries have on stockholders equity?

Increase of $206000.

Increase of $102500.

Increase of $140000.

Increase of $36500.

Testbank Multiple Choice Question 88

Sheffield Corp. received cash of $35100 on September 1, 2020 for one years rent in advance and recorded the transaction with a credit to Unearned Rent Revenue. The December 31, 2020 adjusting entry is

debit Rent Revenue and credit Unearned Rent Revenue, $23400.

debit Unearned Rent Revenue and credit Rent Revenue, $11700.

debit Cash and credit Unearned Rent Revenue, $23400.

debit Rent Revenue and credit Unearned Rent Revenue, $11700.

Coronado Industries purchased equipment on November 1, 2020 and gave a 3-month, 9% note with a face value of $76000. The December 31, 2020 adjusting entry is

debit Interest Expense and credit Interest Payable, $6840.

debit Interest Expense and credit Interest Payable, $1710.

debit Interest Expense and credit Cash, $1140.

debit Interest Expense and credit Interest Payable, $1140