Which of the following accounts would NOT appear in a post-closing trial balance?
Unearned Fees |
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Accounts Payable |
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Fees Eaned |
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Cash |
Our company pays rent of $1,000 per month in advance for the year. At the end of each month, what would be the adjusting entry?
Prepaid Rent 1,000 Rent Expense 1,000 |
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None of these answers is correct. |
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Rent Expense 1,000 Prepaid Rent 1,000 |
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Rent Expense 1,000 Cash 1,000 |
You are learning the accrual basis of accounting in this course rather than the cash basis.
True
False
A company forgets to record six transactions in the month of June. June's trial balance won't balance.
True
False
You have a bank account at TD Bank. Interest is posted monthly to your account. This is an example of an accrued revenue for you.
True
False
Part 1) OPTION C----- Fees earned
Fees earned would not appear in post closing trial balance since fees earned is revenue account and same does not carry any ending balance after accounting period is over.
Part 2)OPTION C
Adjusting Entry would be Rent Expense Debit 1000, Prepaid Rent 1000 Credit
Part 3) OPTION A------ True
Accrual or Mercantile basis of accounting is being followed generally .
Part 4)OPTION B----- False
Since this is an error of complete omission hence it will not affect trial balance.
Part 5)OPTION B----- False
It is not accrued revenue , since bank interest is being earned and received in same period.
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