66) A company received $5,000 for 100 one-year subscriptions on July 1. The journal entry to record this cash receipt would include a ________. The company uses a liability account for revenue received in advance.A) credit to Accounts Payable for $5,000B) debit to Prepaid Expenses for $5,000C) credit to Unearned Revenue for $5,000D) debit to Note Payable for $5,000Answer:
CDiff: 1LO: 3-3AACSB: ApplicationAICPA Functional: Measurement67) Hank's Tax Planning Service started business in January, 2014. The company rented an office for $1,800 per month starting from January 1. On January 1, Hank prepaid the rentals through June 30. The company makes accrual adjustments monthly. What is the balance in the Prepaid Rent account as of April 30?
Diff: 2LO: 3-3AACSB: ApplicationAICPA Functional: Measurement68) Henry Tax Planning Service bought computer equipment for $24,000 on January 1, 2014.It has an estimated useful life of 4 years and zero residual value. Henry uses the straight-linemethod to calculate depreciation and records depreciation expense in the books at the end of every month. Calculate the amount of Depreciation Expense for the period, January 1, 2014 through September 30, 2014, for this equipment.
Diff: 2LO: 3-3AACSB: ApplicationAICPA Functional: Measurement27