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The unadjusted trial balance for a company as of December 31, 2015 appears below. Debit Credit Cash $1,200 Accounts Receivable 900 Prepaid Insurance 900 Supplies

The unadjusted trial balance for a company as of December 31, 2015 appears below.

Debit

Credit

Cash

$1,200

Accounts Receivable

900

Prepaid Insurance

900

Supplies

2,000

Land

10,000

Office Furniture

4,500

Accounts Payable

900

Unearned Revenue

1,500

Note Payable

5,500

Common Stock

3,000

Retained Earnings

7,400

Dividends

1,100

Service Revenues

4,100

Rent Expense

600

Salaries Expense

1,200

$22,400

$22,400

Additional Information:

1. The Company paid $900 for a one-year insurance policy on July 1, 2015.

2. The office furniture was purchased on January 1, 2015 and is expected to have a nine-year life and no salvage. Depreciation for 2015 has not been recorded.

3. The unearned revenue account was created when the Company was paid $1,500 for services to be rendered. Half of these services were rendered on December 31, 2015.

4. The note payable represents a 8 month, 8% loan obtained from The Bank & Trust on October 1, 2015.

5. The Company paid $600 on November 1, 2015 as annual rent for its warehouse. This amount was debited to rent expense.

6. The Company operates five days per week (M-F) with a weekly payroll of $500. The Company pays its employees every Friday. December 31, 2015 is a Wednesday. These wages have yet to be recorded.

7. Supplies on hand at December 31, 2015 had a cost of $600.

Using the information from above...

Part A: The correct adjusting entry for number 5 would be

A.

Debit to Prepaid Rent for $500

B.

Debit to Rent Expense for $500

C.

Credit to Rent Expense for $100

D.

Debit to Prepaid Rent for $100

Please select the correct letter choice

Part B: The correct adjusting entry for number 4 above includes a

A.

Credit to Interest Expense for $110

B.

Debit to Interest Expense for $110

C.

Debit to Interest Payable for $110

D.

Credit to Interest Payable for $290

Please select the correct letter choice.

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