Finacial Accounting QUiz 2 Name: Date: 1. The income statement for the month of June, 2012 of Camera Obscura Enterprises contains the following information: Revenues $7,000 Salaries and Wages Expense Rent Expense Advertising Expense Supplies Expense $3,000 1,000 800 300 Insurance Expense 5,200 $1800 Total expenses Net income The entry to close the revenue account includes a A) credit to Income Summary for $7,000. B) debit to Income Summary for $7,000. C) debit to Income Summary for $1,800. D) credit to Income Summary for $1,800. 2. Ryan Adams, an employee of Heartbreaker Corp., will not receive her paycheck until April 2. Based on services performed from March 15 to March 31, his salary was $1,000. The adjusting entry for Heartbreaker Corp. on March 31 is A) No entry is required. B) Salaries Payable 1,000 Cash 1,000 C) Salaries Expense 1,000 Salaries Payable 1,000 D) Salaries Expense 1,000 Cash 1,000 3. On July 1, Runner’s Sports Store paid $10,000 to Corona Realty for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by Runner’s Sports Store is A) Debit Prepaid Rent, $2,500; Credit Rent Expense, $2,500. B) Debit Rent Expense, $10,000; Credit Prepaid Rent, $10,000. C) Debit Rent Expense, $10,000; Credit Prepaid Rent, $2,500. D) Debit Rent Expense, $2,500; Credit Prepaid Rent, $2,500.
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