Depreciation expense 2,500 The correct answer is: Account Name Debit Credit Depreciation expense 2,000 Accumulated depreciation 2,000

QUESTION 4 Correct Mark 1.00 out of 1.00 On May 1, Phoenix Corporation took out a bank loan of $500,000 to finance the purchase of equipment. The interest rate on the bank loan is 12 percent per year and interest is due annually on April 30. What would be the effect on the accounting equation of the May 31 adjusting entry for interest? Select one: Assets Liabilities Shareholders' Equity No Effect Decrease $5,000 Decrease $5,000 Assets Liabilities Shareholders' Equity No Effect Increase $5,000 Decrease $5,000  ($500,000 x 12% x 1/12) Assets Liabilities Shareholders' Equity No Effect Decrease $5,000 Increase $5,000 Assets Liabilities Shareholders' Equity No Effect Increase $5,000 Increase $5,000 The correct answer is: Assets Liabilities Shareholders' Equity No Effect Increase $5,000 Decrease $5,000

QUESTION 5 Correct Mark 1.00 out of 1.00 The Arizona Saguaros Soccer Team sells season tickets and collects the cash in January at the beginning of the season. They collected $24,000 for season tickets. The soccer season starts in February and the season tickets are for 10 games. In February, the team played 2 games. What adjusting journal entry would the Arizona Saguaros record at the end of February? Select one: Account Name Debit Credit Revenue 1,200 Unearned revenue 1,200 Account Name Debit Credit Unearned revenue 1,200 Revenue 1,200 Account Name Debit Credit Revenue 4,800 Unearned Revenue 4,800 Account Name Debit Credit Unearned revenue 4,800 Revenue 4,800  ($24,000/10 games) x 2 games The correct answer is: Account Name Debit Credit Unearned revenue 4,800 Revenue 4,800

QUESTION 6 Correct Mark 1.00 out of 1.00 The Cholla Corporation earned rental revenue of $5,000 in December but will not receive this until January. What is the effect of making the adjusting entry at December 31?