Weisz Co. borrowed $80,000 from the bank on July 20, 2019. An account used to record the transaction would be:

Multiple Choice

• Service Revenue

• Accounts Receivable

• Office Supplies.

Resources a company owns or controls that are expected to yield future benefits are called:

Multiple Choice

• Assets

• Equity

• Liabilities

• Income

Spearman Co. owns equipment with an original cost of $125,000, and an estimated salvage value of $5,000 that is being depreciated at $15,000 per year using the straight-line depreciation method, and only prepares adjustments at year-end. The adjusting entry needed to record annual depreciation would be:

Multiple Choice

• Depreciation Expense 15,000

  Accumulated Depreciation 15,000

• Accumulated Depreciation 15,000

  Depreciation Expense 15,000

• Unearned Revenue 15,000

  Cash 15,000

• Prepaid Insurance 15,000

  Insurance Expense 15,000

If Rex Co. purchased office equipment costing $82,000 on account, the effect on the accounting equation would be:

Multiple Choice

• No affect on Assets, Liabilities or Equity.

• Liabilities increase $82,000, Equity decreases $82,000.

• Assets increase $82,000, Liabilities increase $82,000.

• Assets increase $82,000, Equity increases $82,000