On August 1, Year 1, Gomez Company borrowed $66,000 cash. The one-year note carried a 5% rate of interest. Which of the following shows how the accrual of interest expense in Year 2 will affect Gomez’s financial statements?

Which of the following elements is increased with a debit?

Stosch Company’s balance sheet reported assets of $40,000, liabilities of $15,000 and common stock of $12,000 as of December 31, Year 1. Retained earnings on the December 31, Year 2 balance sheet is $18,000 and Stosch paid a $14,000 dividend during Year 2. What is the amount of net income for Year 2?

Which of the following elements is increased with a debit?

Which of the following events would require a year-end adjusting entry?

The journal entry to close the revenue account would include which of the following?

The journal entry to close the revenue account would include which of the following?

On October 1, Year 1 Allen Company paid $24,000 cash to lease office space for one year beginning immediately. How would the adjustment on December 31, Year 1 to recognize rent expense affect the company’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.(6,000) (6,000) 6,000 (6,000) B.(6,000) 6,000 6,000 (6,000)(6,000) Operating ActivityC.(2,000) (2,000) 2,000 (2,000) D.(4,000) (4,000) 4,000 (4,000)(4,000) Operating Activity

ABC Company experienced an accounting event that is shown in the following T-accounts: CashDebitCredit3,000 Unearned RevenueDebitCredit 3,000 Which of the following reflects how this event affects the company’s financial statements?

Amelia Consulting Services collected $12,000 cash for services to be provided in the future. Which of the following shows how recognizing the cash receipt will affect the company’s balance sheet? Balance SheetAssets=Liabilities+Stockholders’ EquityCash+Prepaid Rent=Unearned Revenue+Common Stock+Retained EarningsA. + =12,000+ +(12,000)B.12,000+ =12,000+ + C.12,000+ = + +12,000D. + =(12,000)+ +12,000