The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

a. Debit Unpaid Salaries and credit Salaries Payable.
b. Debit Salaries Payable and credit Salaries Expense.
c. Debit Salaries Expense and credit Cash.
d. Debit Salaries Expense and credit Salaries Payable.
e. Debit Cash and credit Salaries Expense.




Answer: D

On May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned. The adjusting entry on December 31 Year 1 should include:

On May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned. The adjusting entry on December 31 Year 1 should include:

a. A debit to Unearned Fees for $500.
b. A credit to Unearned Fees for $500.
c. A credit to Earned Fees for $1,000.
d. A debit to Earned Fees for $1,000.
e. A debit to Earned Fees for $500.




Answer: C

PPW Co. leased a portion of its store to another company for eight months beginning on October 1, 2009, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co. recorded as unearned revenue. The journal entry made by PPW Co. at year- end on December 31, 2009 would include:

PPW Co. leased a portion of its store to another company for eight months beginning on October 1, 2009, at a monthly rate of $800. This other company paid the entire $6,400 cash on October 1, which PPW Co. recorded as unearned revenue. The journal entry made by PPW Co. at year- end on December 31, 2009 would include:

a. A debit to Rent Earned for $2,400.
b. A credit to Unearned Rent for $2,400.
c. A debit to Cash for $6,400.
d. A credit to Rent Earned for $2,400.
e. A debit to Unearned Rent for $4,000.

Answer: D

On April 30, 2009, a three-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31, 2009?

On April 30, 2009, a three-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31, 2009?

a. $500.
b. $4,000.
c. $6,000.
d. $14,000.
e. $18,000.





Answer: B