38.Issuance of common stock for cash affects which basic element of financialstatements?a.Revenuesb.Lossesc.Liabilitiesd.EquityD39.Which of the following is a fundamental quality of useful accounting information?b40.Which of the following is a fundamental quality of useful accounting information?C41.Generally accepted accounting principles42.A soundly developed conceptual framework of concepts and objectives shoulda.increase financial statement users' understanding of and confidence infinancial reporting.b.enhance comparability among companies' financial statements.c.allow new and emerging practical problems to be more quickly solved.d.All of these answer choices are correct.D43.How do these prepaid expenses expire?RentSupplies44.Maso Company recorded journal entries for the issuance of common stock for$200,000, the payment of $65,000 on accounts payable, and the payment of
salaries expense of $105,000. What net effect do these entries have onstockholders’ equity?CIssuing common stocks increases equity. Expense decreases net income, decreasesretained earnings, and decreases equity 200000-105000=9500045.Tate Company purchased equipment on November 1, 2017 and gave a 3-month,9% note with a face value of $80,000. The December 31, 2017 adjusting entryisa.debit Interest Expense and credit Interest Payable, $7,200.b.debit Interest Expense and credit Interest Payable, $1,800.c.debit Interest Expense and credit Cash, $1,200.d.debit Interest Expense and credit Interest Payable, $1,200.D80000X9%/12x2=120046.During the first year of Wilkinson Co.'s operations, all purchases were recorded asassets. Supplies in the amount of $28,800 were purchased. Actual year-endsupplies amounted to $6,600. The adjusting entry for store supplies willb28800-6600
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