Q1)A Company signed a four-month note payable in the amount of
$8,000 on September 1. The note requires interest at an annual rate
of 9%. The amount of interest to be accrued at the end of December
is: *
1)$240
2)$60
3)$720
4)$80
Q2))A company usually determines the amount of supplies used
during a period by: *
1)Adding the supplies on hand to the balance of the Supplies
account
2)Summing the amount of supplies purchased during the
period
3)Taking the difference between the supplies purchased and the
supplies paid for during the period
4)Taking the difference between the balance of the Supplies
account and the cost of supplies on hand
Q3))If a business has received cash in advance of services
performed and credits a liability account, the adjusting entry
needed after the services are performed will be: *
1)Debit Unearned Revenue and credit Cash
2)Debit Unearned Revenue and credit Service Revenue
3)Debit Unearned Revenue and credit Prepaid Expense
4)Debit Unearned Revenue and credit Accounts Receivable
Q3))A Company collected $8,400 in October 1 of 2018 for 4
months of service which would take place from October of 2018
through January of 2019. The revenue reported from this transaction
at the end of October adjusting entry would be: *
1)$0
2)$6,300
3)$8,400
4)$2,100
Q4)A Company issued a one-year, 9%, $200,000 note on April 1,
2019. Interest expense for the year ended December 31, 2019 was:
*
1)$18,000
2)$13,500
3)$12,000
4)$10,500
Q5)At March 1, 2020, Candy Inc. had supplies on hand of $500.
During the month, Candy purchased supplies of $1,200 and used
supplies of $1,500. The March 31 adjusting journal entry should
include a: *
1)Debit to the supplies account for $1,500
2)Credit to the supplies account for $500
3)Debit to the supplies account for $1,200
4)Credit to the supplies account for $1,500
Q6))If business pays rent in advance and debits a Prepaid Rent
account, the company receiving the rent payment will credit:
*
1)Cash
2)Prepaid rent
3)Unearned rent revenue
4)Accrued rent revenue