68.Unearned revenue appears:
A. As income on the income statement.
B. As an asset on the balance sheet.
C. As a liability on the balance sheet.
D. As a part of the retained earnings.
69.Videobusters, Inc. offered books of video rental coupons to its patrons at $40 per book. Each book contained a certain number of coupons for video rentals. During the current period 500 books were sold for $20,000, and this amount was credited to Unearned Rental Revenue. At the end of the period, it was determined that $15,000 worth of coupons had been used by customers to rent videos. The appropriate adjusting entry at the end of the period would be:
A. Debit Rental Revenue $5,000 and credit Unearned Rental Revenue $5,000.
B. Debit Rental Revenue $15,000 and credit Unearned Rental Revenue $15,000.
C. Debit Unearned Rental Revenue $5,000 and credit Rental Revenue $5,000.
D. Debit Unearned Rental Revenue $15,000 and credit Rental Revenue $15,000.
70.Refer to the information above. According to service contracts, $4,810 of the Unearned Service Revenue has been earned in March. The amount of Service Revenue Earned to be reported in the March income statement is:
A. $16,510.
B. $21,320.
C. $11,700.
D. $20,410.
71.Refer to the information above. On March 1, Hoffman paid in advance for four months' insurance. The necessary adjusting entry at March 31 includes which of the following?
A. A credit to Prepaid Insurance for $2,340.
B. A credit to Prepaid Insurance for $780.
C. A debit to Prepaid Insurance for $2,340.
D. A debit to Prepaid Insurance for $780.
72.Refer to the information above. At March 31, the amount of supplies on hand is $520. What amount is reported in the March income statement for supplies expense?
A. $1,300.
B. $0.
C. $520.
D. $780.
73.Refer to the information above. The equipment had an estimated useful life of five years. Compute the book value of the equipment at March 31, after the proper March adjustment is recorded.
A. $10,833.
B. $15,167.
C. $25,567.
D. $10,400.
74.Refer to the information above. Employees are owed $750 for services since the last payday in March, to be paid the first week in April. The amount to be reported in the March income statement for salaries expense is:
A. $7,800.
B. $750.
C. $7,050.
D. $8,550.
75.Under accrual accounting, fees received in advance from customers should be shown as being earned:
A. When cash is collected.
B. When services are performed or goods delivered.
C. When tax rates are low.
D. When tax rates are high.
76.The United Shipping Co. borrowed $25,000 at 12% interest on March 1, 2015. The note is to be repaid, with interest, in six months. If United Shipping makes monthly adjusting entries, which of the following is included as part of the March 31 adjusting entry?
A. Debit Interest Receivable $250.
B. Credit Interest Payable $2,500.
C. Debit Interest Expense $250.
D. Debit Interest Payable $250.
77.Hahn Corp. has three employees. Each earns $600 per week for a five day work week ending on Friday. This month the last day of the month falls on a Wednesday. The company should make an adjusting entry:
A. Debiting Wage Expense for $1,080 and crediting Wages Payable for $1,080.
B. Debiting Wage Expense for $360 and crediting Wages Payable for $360.
C. Crediting Wage Expense for $1,080 and debiting Wages Payable for $1,080.
D. Crediting Wage Expense for $360 and debiting Wages Payable for $360.