The incentive commission for the quarter

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September 30, 2001October 22, 2001The incentive commission for the quarter ended December 31, 2001, was$35,000. This amount was recorded and paid in January 2002. What amountshould Lane report as incentive commission expense for 2001?a.$160,000.b.$118,000.c.$153,000.d.$195,000.Use the following information for questions 38 through 40:The income statement of Carsen Corporation for 2001 included the following items:Interest revenue$75,500Salaries expense65,000Insurance expense9,600The following balances have been excerpted from Carsen Corporation's balance sheets:December 31, 2001December 31, 2000Accrued interest receivable$9,100$7,500Accrued salaries payable8,9004,200Prepaid insurance1,1001,500*38.The cash received for interest during 2001 was*39.The cash paid for salaries during 2001 wasa.$69,700.b.$60,300.c.$60,800.d.$73,900.
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*40.The cash paid for insurance premiums during 2001 wasa.$8,500.b.$8,100.c.$10,000.d.$9,200.Use the following information for questions 41 through 43:Poole Company paid or collected during 2001 the following items:Insurance premiums paid$ 12,400Interest collected25,900Salaries paid125,200The following balances have been excerpted from Poole's balance sheets:December 31, 2001December 31, 2000Prepaid insurance$ 1,200$ 1,500Interest receivable3,7002,900Salaries payable12,30010,600*41.The insurance expense on the income statement for 2001 was*42.The interest revenue on the income statement for 2001 wasa.$19,300.b.$25,100.c.$26,700.d.$32,500.*43.The salary expense on the income statement for 2001 wasa.$102,300.b.$123,500.c.$126,900.d.$148,100.44.Rice Corporation loaned $45,000 to another corporation on December 1, 2001 and received a 3-month, 8% interest-bearing note with a face value of $45,000. What adjusting entry should Ricemake on December 31, 2001?
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*45.At the end of 2001, Drew Company made four adjusting entries for the following items:1.Depreciation expense, $25,000.2.Expired insurance, $2,200 (originally recorded as prepaid insurance).3.Interest payable, $6,000.4.Rental revenue receivable, $10,000.In the normal situation, to facilitate subsequent entries, the adjusting entry orentries that may be reversed is (are)a.Entry No. 3.b.Entry No. 4.c.Entries No. 3 and No. 4.d.Entries No. 2, No. 3, and No. 4.Use the following information for questions 46 and 47:A company receives interest on a $30,000, 8%, 5-year note receivable each April 1. AtDecember 31, 2000, the following adjusting entry was made to accrue interestreceivable:Interest Receivable ...................................................................................1,800Interest Revenue ........................................................................
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