1. Pfister Corporation prepaid a full year's rents on their warehouse for the period from September 1, 2008 to August 31, 2009. At that time, they debited prepaid rent and credited cash for $24,000. Determine the correct of rent expense to be included in income for the year ending on December 31, 2008. Enter your answer with no commas, dollar signs, decimals, etc.
2. Indicate which of the following accounts is increased by a debit ( select all):
a. Selling, General and Administrative Expense
b. Dividends Payable
c. Accumulated Depreciation
d. Cash
e. Accounts Receivable
f. Accrued Expenses
g. Short-term Investments
h. Interest Expense
3. Warner Corporation sold $80,000 of merchandise on credit. The merchandise originally cost $55,000. Warner uses the perpetual method of inventory and records the cost of all sales at the time of the sale. Select ALL debits and credits that would be made to reflect this transaction.
a. Debit Revenue (Ret. Earn) for $80,000
b. Debit Accounts Receivable $80,000
c. Debit Cost of Goods Sold (Ret. Earn) for $80,000
d. Debit Cost of Goods (Ret. Earn) sold for $55,000
e. Credit Revenue (Ret. Earn) for $80,000
f. Credit Inventory for $55,000
g. Credit Profit (Ret. Earn) for $25,000
4. James Corporation sold $80,000 of merchandise for cash. The merchandise originally cost $55,000. Warner uses the perpetual method of inventory and records the cost of all sales at the time of the sale. Select ALL debits and credits that would be made to reflect this transaction.
a. Debit Revenue (Ret. Earn) for $80,000
b. Debit Cash $80,000
c. Debit Cost of Goods Sold (Ret. Earn) for $80,000
d. Debit Cost of Goods Sold (Ret. Earn) for $55,000
e. Credit Revenue (Ret. Earn) for $80,000
f. Credit Inventory for $55,000
g. Credit Profit (Ret. Earn) for $25,000