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Flashcards in Ch 3 Wrong Answers Deck (8):
0

Prepare an adjusting entry to record $300 accrued interest?

Interest receivable. 300
Interest revenue. 300

1

There is a 4 month $12,000 note dated October 1, prepare a February 1 journal entry to record receipt of $12,400 from the borrower.

Feb. 1 Cash. 12,400
Notes rec. 12,000
Int. receivable. 300
Int. revenue. 100. (earned the following year)

2

Interest notes payable of 300 is accrued, prepare journal entry?

Int. exp. 300
Int. payable. 300

3

Bad debt expense for the year is $900, prepare journal entry

Bad debt exp. 900
Allowance for doubtful accounts. 900

4

Prepare a reverse entry for the adjustment entry of debating salaries and wages expense and crediting salaries and wages payable for $4200?

Wages payable. 4200
Wages expense. 4200

5

Prepare journal entry for received cash of $2300 for services
Completed for Forengi Co

Cash. 2300
Service revenue. 2300

6

One third of unearned rent was recognized as revenue during the quarter, make adjustment entry, unearned rent = $9300

Unearned rent revenue. 3100
Rent revenue. 3100

7

Make adjustment entries for the end of August: on August 1 roddick borrowed $30,000 from a local bank at an annual interest rate of 8 %

Interest exp. 200
Int payable. 200