Unit 3 Assessment.docx - Question 1 Jupiter Company signed...

Question 1
Jupiter Company signed a one-year $36,000 note payable at 8% interest on March 1, 2019. How much
interest expense must be accrued on May 31, 2019? (Round any intermediate calculations to two
decimal places, and your final answer to the nearest whole number.)
$2,880
$1,080
$720
$360
5 points
Question 2
On January 1, 2017, the Accounts Receivable of Martha Company had a debit balance of $190,000.
During January, the company provided services for $400,000 on account. The company collected
$240,000 from its customers on account in January. What was the ending balance in the Accounts
Receivable account at the end of January?
5 points
Question 3
A company receives payment from one of its customers on August 5 for services performed on July 21.
Which of the following entries would be recorded if the company uses accrual basis accounting?
5 points

Question 4
When does a company account for revenue if it uses cash basis accounting?
5 points