The adjusting entry to record interest that has

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Finite Mathematics and Applied Calculus
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Chapter 3 / Exercise 17
Finite Mathematics and Applied Calculus
Costenoble/Waner
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79. The adjusting entry to record interest that has accrued on a note payable to the bank willcause an immediate: A. Increase in liabilities and reduction in net income.B. Decrease in liabilities and reduction in net income.C. Decrease in assets and reduction in net income.D. Increase in assets and increase in net income.
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Finite Mathematics and Applied Calculus
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Chapter 3 / Exercise 17
Finite Mathematics and Applied Calculus
Costenoble/Waner
Expert Verified
80. Which of the following would not be considered an adjusting entry?
81. In which of the following situations would an adjusting entry be made at the end of January to record an accrued expense?
82. As of January 31, Princess Company owes $500 to Butler Co. for equipment rented duringJanuary. If no adjustment is made for this item at January 31, how will Princess's financialstatements be affected?
83. Which of the following is notconsidered an end-of-period adjusting entry? A. The entry to record the portion of unexpired insurance which has become expense during the period.B. An entry to record revenue which has been earned but has not yet been billed tocustomers.C. The entry to record depreciation expense.D. An entry to record repayment of a bank loan and to recognize related interest expense.
84. The accrual of interest on a note payable will:
Omega Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31:(1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1.(2) The company pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay amountingto $6,800.(3) On December 1, rent on the office building had been paid for four months. The monthly rent is $6,000.(4) Depreciation of office equipment is based on an estimated useful life of six years. Thebalance in the Office Equipment account is $9,360; no change has occurred in the account during the year.(5) Fees of $9,800 were earned during the month for clients who had paid in advance.

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