A company's accountant is trying to prepare an adjusted trial balance from the list of accounts below.
Cash $ 12,000
Retained Earnings 31,000
Prepaid Rent 2,000
Salaries Expense 15,000
Equipment 68,000
Service Revenue 40,000
Miscellaneous Expense 10,000
Supplies 4,000
Dividends 3,000
Accounts Payable 5,000
Common Stock 38,000
A) $114,000.
B) $86,000.
C) $81,000.
D) $11,000.
Answer: A
A) Rent Expense, $4,800; Prepaid Rent $0.
B) Rent Expense, $1,600; Prepaid Rent $3,200.
C) Rent Expense, $1,600; Prepaid Rent $4,800.
D) Rent Expense, $3,200; Prepaid Rent $1,600.
Answer: B
Prior to adjusting entries, Prepaid Rent had a balance of $8,300. The following year-end adjusting entry was made by the company:
Rent Expense 6,800
Prepaid Rent 6,800
A) $1,500.
B) $6,800.
C) $8,300.
D) $15,100.
Answer: A
A) Accounts Payable.
B) Supplies.
C) Cash.
D) Retained Earnings.
Answer: B
A) Cash.
B) Rent Expense.
C) Rent Payable.
D) Rent Receivable.
Answer: B
A) Debit Cash, credit Accounts Payable.
B) Debit Service Revenue, credit Cash.
C) Debit Salaries Expense, credit Salaries Payable.
D) Debit Utilities Expense, credit Retained Earnings.
Answer: C
Finnish Motors has the following balance sheet accounts:
Land $ 150,000
Equipment 90,000
Salaries Payable 12,000
Notes Payable 99,000
Supplies 10,000
Cash 25,000
Common Stock 40,000
Retained Earnings 100,000
Accounts Payable ?
Prepaid Rent ?
A) $15,000.
B) $25,000.
C) $12,000.
D) $39,000.
Answer: A
