201 FS 11 Journal Entries-Income--Key

201 FS 11 Journal Entries-Income--Key - 201 Journal...

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201 Journal Entries—Income Statement 1. Napstone Corp received a $1,500 utility bill in March. The bill will not be paid until April. What journal entry should Napstone make at the time the bill is received? a. Utility expense $1,500 Accounts payable $1,500 b. Utility expense $1,500 Cash $1,500 c. Accounts Payable $1,500 Utility expense $1,500 d. No journal entry is necessary e. None of the above (i.e. there should be a journal entry, but a-c are incorrect) 2. Napstone Corp received a $1,500 utility bill in March. The bill will not be paid until April. Napstone records bills as they are received. What journal entry should Napstone make at the time the bill is paid in full? a. Utility expense $1,500 Accounts payable $1,500 b. Utility expense $1,500 Cash $1,500 c. Accounts Payable $1,500 Cash $1,500 d. No journal entry is necessary e. None of the above (i.e. there should be a journal entry, but a-c are incorrect) 3. A company purchased a $210,000 piece of equipment on Jan 1, at the beginning of its
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201 FS 11 Journal Entries-Income--Key - 201 Journal...

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