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what is this??? You are logged in as lleana Dia Question 21 {The following information applies to the questions displayed below.) Not yet answered Marked
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You are logged in as lleana Dia Question 21 {The following information applies to the questions displayed below.) Not yet answered Marked out of 1.00 P Flag question Omega Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31: (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1. (2) The company pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay amounting to $6,800. (3) On December 1, rent on the office building had been paid for four months. The monthly rent is $6,000. (4) Depreciation of office equipment is based on an estimated useful life of six years. The balance in the Office Equipment account is $9,360; no change has occurred in the account during the year. (5) Fees of $9,800 were earned during the month for clients who had paid in advance. Failure to make the appropriate adjustment to the Salary Expense account will: Select one: a. Understate net income for December by $6,800. b. Understate net income for January by $6,800. c. Overstate total liabilities at December 31. d. Overstate the balance in Cash at December 31. Question 22 The valuation of assets in the balance sheet is based primarily upon Not yet answered Select oneStep by Step Solution
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