 Question 1  5 out of 5 points Mercury Company...

This preview shows page 1 - 3 out of 8 pages.

UNIT 3 Question 1  5 out of 5 points Mercury Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of each month, the company makes an adjusting entry to account for the tickets used during the month (ticket revenue.) On March 1, the Unearned Revenue account had a credit balance of $5,000. During March, Mercury sold 500 tickets at $40 each, and 450 tickets were used during the month. What is the balance in Unearned Revenue at the end of March?
Question 2  5 out of 5 points ABC Tax Planning Service started business in January 2018. The company rented an office for $1,800 per month starting from January 1, 2018. On that day, ABC prepaid the rent through June 30. The company makes adjusting entries at the end of each month. What is the balance in the Prepaid Rent account as of April 30, 2018?
Question 3  5 out of 5 points
If a company is using accrual basis accounting, when should it record revenue?
Question 4  5 out of 5 points 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?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture