The stationery account has a balance of 2 700 at the

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8. The stationery account has a balance of $2 700 at the beginning of the year and was debited during the year for $6 400, representing the total of stationery purchased during the year. If $1 900 of stationery is on hand at the end of the year, the stationery expense to be reported on the profit and loss statement for the year is: a. $1 900. b. $9 100. c. $7 200. d. $5 600. Analysis: a. Incorrect. Read ‘5.2 Accrual accounting adjustments’. b. Incorrect. Read ‘5.2 Accrual accounting adjustments’. c. Correct. Read ‘5.2 Accrual accounting adjustments’. d. Incorrect. Read ‘5.2 Accrual accounting adjustments’.
<question type=“mc”> 9. A payment for insurance on 1 January for $18 000, covering the period 1 January 2019 to 31 December 2019, was recorded as a prepayment. No adjusting entry was made at 30 June 2019. As a result:
<question type=“mc”> 10. Watson Ltd has a $30 000 balance in its unearned service revenue account. Where would this account appear in the financial statements?
d. It would appear as a current asset in the balance sheet. Analysis: a. Correct. Read ‘5.2 Accrual accounting adjustments’. b. Incorrect. Read ‘5.2 Accrual accounting adjustments’. c. Incorrect. Read ‘5.2 Accrual accounting adjustments’. d. Incorrect. Read ‘5.2 Accrual accounting adjustments’. <question type=“mc”> 11. On 30 August 2019, GoGlass received an advance of $20 000 from a client for future work. The work was completed to the client’s satisfaction on 28 September 2019. What is the journal entry made by GoGlass on 30 August 2019?

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