The employees of Lucid Laboratories are paid every two weeks on Friday for a Monday though Friday work week. Total payroll is $15,000 and covers 10 workdays. The end of the current month falls on the second Tuesday of the pay period. What is the adjusting journal entry to accrue payroll at the end of the month? O A. Salaries Expense Salaries Payable 10,500 10,500 O B. Salaries Expense 10,500 4,500 Prepaid Salaries Salaries Payable 15,000 O C. Prepaid Salaries Salaries Payable 4,500 4,500 O D. Salaries Expense Salaries Payable 4,500 4,500 All of the following accounts are temporary accounts except A. Gain on Sale of Equipment B. Interest Expense C. Sales Revenue O D. Dividends Payable Question Help How does FASB define cash equivalents? Provide the Codification reference. How does FASB define cash equivalents? O A. Cash equialents are on the asset side of a company's balance sheet that represents the company's investments, including stocks, bonds, real estate and cash, that it intends to hold for more than a year. B. Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. O C. Cash equivalents are short-term, highly liquid investments that do not have either of the following characteristics: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. O D. Cash equivalents are long-term, highly liquid investments that have one of the following characteristics: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The Codification reference is ASC 305-10-15: Cash and Cash Equivalents-Overall-Scope and Scope Exceptions The White Boar Pub purchased a two year insurance policy for $6,600 on February 1 and recorded it as an asset. On June 30, the adjusting entry that should be made is O A. Insurance Expense Prepaid Insurance 5,225 5,225 O B. Insurance Expense Prepaid Insurance 1,375 1,375 O C. Prepaid Insurance 1,375 Insurance Expense 1,375 O D. Prepaid Insurance 5,225 Insurance Expense 5,225 Smith Corporation purchased $66,000 of merchandise on credit. The company uses the perpetual method of recording inventory purchases. What would be the correct journal entry to record the purchase? O A. Purchases 66,000 Accounts Payable 66,000 O B. Merchandise Inventory Accounts Payable 66,000 66,000 O C. Purchases 66,000 Interest Payable 66,000 O D. Merchandise Inventory 66,000 Cash 66,000