1The accounting equation can be stated as:Multiple ChoiceA + L ? OE = 0.A ? L + OE = 0.?A + L ? OE = 0.A ? L ? OE = 0.2Mary Parker Co. invested $15,000 in ABC Corporation and received common stock in exchange. Mary Parker Co.’s journal entry to record this transaction would include a:Multiple ChoiceDebit to investments. Credit to retained earnings.Credit to common stock.Debit to expense.3On December 31, 2017, Coolwear, Inc. had a balance in its prepaid insurance account of $48,400. During 2018, $86,000 was paid for insurance. At the end of 2018, after adjusting entries were recorded, the balance in the prepaid insurance account was 42,000. Insurance expense for 2018 would be:Multiple Choice$6,400.$134,400.$86,000.$92,400. 4Carolina Mills purchased 0,000 in supplies this year. The supplies account increased by $23,000 during the year to an ending balance of $70,000. What was supplies expense for Carolina Mills during the year?Multiple Choice$191,000.$329,000.$283,000.$237,000.510/10points awardedItemScoredItem5Item 5 10 of 10 points awarded Item ScoredYummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2018, and charged the $3,600 premium to Insurance expense. At its December 31, 2018, year-end, Yummy Foods would record which of the following adjusting entries?
Multiple
Choice
•Insurance
expense 750
Prepaid
insurance 2,850
Insurance
payable 3,600
•Prepaid
insurance 750
Insurance
expense 750
•Prepaid
insurance 2,850
Insurance
expense 2,850
•Insurance
expense 750
Prepaid
insurance 750Bottom of
Form
6The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $33,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June?
Multiple
Choice
•
Prepaid
salaries 9,900
Salaries
payable 9,900
•
Salaries
expense 6,600
Salaries
payable 6,600
•
Salaries
expense 23,100
Prepaid
salaries 9,900
Salaries
payable 33,000
•
Salaries
expense 23,100
Salaries
payable 23,100Bottom
of Form7Mama’s Pizza Shoppe borrowed $6,600 at 6% interest on May 1, 2018, with principal and interest due on October 31, 2019. The company’s fiscal year ends June 30, 2018. What adjusting entry is necessary on June 30, 2018?
Multiple Choice
•Prepaid
interest 66
Interest
payable 66
•Interest
expense 66
Interest
payable 66
•
• Interest
expense 132
Interest
payable 132Bottom of
Form8On September 15, 2018, Oliver’s Mortuary received a $6,000, nine-month note bearing interest at an annual rate of 12% from the estate of Jay Hendrix for services rendered. Oliver’s has a December 31 year-end. What adjusting entry will the company record on December 31, 2018?
Multiple
Choice
•
Interest
receivable 210
Notes
receivable 210
•
Interest
receivable 720
Interest
revenue 210
Cash 510
•
Interest
receivable 210
Interest
revenue 210
•
Interest
receivable 510
Interest revenue
5109The correct amount of prepaid insurance shown on a company’s December 31, 2018, balance sheet was $900. On July 1, 2019, the company paid an additional insurance premium of $600. In the December 31, 2019, balance sheet, the amount of prepaid insurance was correctly shown as $500. The amount of insurance expense that should appear in the company’s 2019 income statement is:Multiple Choice$1,500$1,400$1,000 $60010The closing process involves:Multiple ChoiceRecording year-end adjusting entries.Transferring revenue and expense balances to retained earnings.Closing out the permanent account balances.All of these answer choices are incorrect.
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