Quiz 2 (Chapter 34 I . Multiple Choices 1. Which of the following is the entry t
ID: 2579963 • Letter: Q
Question
Quiz 2 (Chapter 34 I . Multiple Choices 1. Which of the following is the entry to be recorded by a law firm wken it receles a 52,000 retainer from new client at the initial client meeting? a. Debit to Cash, $2,000, credit to Legal Fees Revenue, $2.000 b. Debit to Accounts Receivable, $2.000, credit to Legal Fees Revenue, $2,000 c. Debit to Uncarned Revenue,$2,000, credit to Legal Fees Revenue, $2,000 d. Debit to Cash, $2.000; credit to Unearned Revenue, $2,000 e. Debit to Uncarned Revenue, $2,000, credit to Cash, $2.000. 2. During 2014, CjrCo Inc incurred operating expenses of $250,00, of which s150,000 was paid in cash; the balance will be paid in January 201S. Transaction analysis of opecrating espenses for 2014 should reflect only the following a. Decrease stockholders' equity, $150,000; decrease assets, $150,000. b. Decrease assets, $250,000; decrease stockholders' equity, $250,00o. e. Decrease stockholders' equity, $250,000; decrease assets, $150,000; increase liabilities, $100,000 d. Decrease assets, $250,000; increase liabilities, $100,000: decrease stockholders' equity, S150,000 e. None of the above is correct. . Which of the following accounts would not appear in a closing entry? a. Salary Expense b. Interest Income c. Accumulated Depreciation d. Retained Earnings 4. Which account is least likely to appear in an adjusting journal entry? a. Interest Receivable b. Cash c.Property Tax Expense d.Salaries Payable S. On October 1, 2014, the $12,000 premium on a one-year insurance policy for the building was paid and recorded as Prepaid Insurance. On December 31, 2014 (end of the accounting period), what adjusting entry is needed? a. Insurance Expense (+E) 2,000 c. Prepaid Insurance (+A) 3,000 Prepaid Insurance (-A) 2,000 Insurance Expense (-E) 3,000 b. Insurance Expense (+E) 3,000 d. Prepaid Insurance (+A) 9.000 Prepaid Insurance -A) 3,000 Insurance Expense (-E) 9.000 6. On June 1, 2013, Oak Company signed a three-year $110,000 note payable with 9 percent interest. Interest is due on June 1 of each year beginning in 2014. What amount of interest expense should be reported on the income statement for the year ended December 31,2013? a. $5,250 b. $5,775 c. $4,950 d.$9,900 7,Failure to make an adjusting entry to recognize accrued salaries payable would cause which of the following? a. An understatement of expenses, liabilities, and stockholders' equit b. An understatement of expenses and liabilities and an overstatement of equityExplanation / Answer
1. Correct option is d
Explanation:
As cash is received , so it is debited with $2,000.
This cash is received for the services which is not provided yet so it is a liability and recorded as unearned revenue . Unearned revenue is credited.
So cash is debited with $2,000, and credit to unearned revenue $2,000.