Classic Artists' Services has hired a maintenance man to maintain a building they use for instruction. He will begin work on February 1 and work through till May 31. Classic Artists' will pay the maintenance man $4,000 at the end of May. It accrues Maintenance Expense at the end of every month. What is the balance in the Accounts Payable account for amounts owed to the maintenance man at the end of March?
A. Debit balance of $4,000
B. Credit balance of $2,000
C. Debit balance of $2,000
D. Credit balance of $4,000
查看答案
On December 31, 2014, the balance in Pinnacle Exploration Company's Unearned Revenue account was a credit of $8,000. In January, 2015, the company received an advance payment of $14,000 from a new customer for services to be performed. By January 31, adjustments had been made to recognize $7,000 of the revenue which had been earned during January. What was the balance in Unearned Revenue on January 31, 2015?
A. $7,000 credit
B. $14,000 debit
C. $8,000 credit
D. $15,000 credit
A business acquired equipment for $150,000 on January 1, 2015. The equipment will be depreciated over five years of its useful life using the straight-line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on equipment for the year 2015? (Assume the salvage value of the acquired equipment to be zero.)
A. Debit $150,000 to Equipment and credit $150,000 to Cash.
B. Debit $150,000 to Depreciation Expense and credit $150,000 to Accumulated Depreciation.
C. Debit $30,000 to Depreciation Expense and credit $30,000 to Accumulated Depreciation.
Debit $30,000 to Depreciation Expense and credit $30,000 to Equipment.
On September 1, 2014, Joy Company paid $8,000 in advance for an 8-month rental space covering the period of September, 2014 through April, 2015. The prepaid expense was initially recorded as an asset. Joy makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2014 would include a:
A. debit of $8,000 to Cash.
B. credit of $8,000 to Prepaid Rent.
C. debit of $4,000 to Rent Expense.
D. credit of $4,000 to Rent Expense.
ABC Company signed a one-year $12,000 note payable at 8% interest on May 1, 2012. How much interest expense must be accrued on May 31, 2012?
A. $960
B. $320
C. $80
D. $40