A company has an asset account, Prepaid Insurance, with a balance of $3,750 at the beginning of the month. The company used $980 of insurance during the month. Which of the following statements is true?
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Retained earnings and stockholders' equity should decrease because of this transaction.
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Retained earnings and stockholders' equity should be unchanged by this transaction.
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The company should credit Insurance Expenses for $980 and debit Prepaid Insurance for $980.
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The company should credit Accrued Liabilities for $980 and debit Insurance Expenses for $980.
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Purrfect Pets had $6,000 of supplies at the end of October. During November, the company bought $2,000 of supplies. At the end of November, the company had $1,000 of supplies remaining. Which of the following statements is not true?
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An expense should be debited for $7,000 in November.
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During November, the company used $7,000 of supplies.
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The carrying value of supplies on November 30 should be $1,000.
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An asset should be debited for $1,000 in November.
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A company reported the following amounts of wages payable at the beginning and the end of the year 2010:
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Wages payable, January 1, 2010 $820
Wages payable, December 31, 2010 $2,640
The income statement for 2010 reported Wages Expense of $57,600.
How much cash was paid for wages during 2010?