1) The unadjusted trial balance amount for Prepaid Rent account on December 31, 2013, is $3,600. The rental is for additional office space for 12 months. The rental started on April 1, 2013 and the $3,600 rental fee was paid on that date. The required adjusting entry on December 31, 2013 would need a:
Debit to _______________ (Account Title)
For $_______________ (Amount)
2) Ned Sales had total credit sales in June of $100,000. On June 30, 2013 (before any adjustments) Accounts receivable are $20,000 and Allowance for Doubtful Accounts consist of a $100 debit balance. When Ned Sales estimates bad debt losses as 4% of total credit sales, the total realizable value of the Accounts Receivable AFTER the June 30, 2013 adjusting entry is:
$_______________ (Amount)
3) When Mel Corporation sells 60,000 shares of its latest $1 par value common stock to investors for $14 per share; the required journal entry would need a credit to Common Stock for:
$_______________ (Amount)
4) Jen Industries purchased specialized equipment on July 1, 2011, which cost $85,000, has a residual value of $5,000, and a helpful life of four years. Jen employs the sum of the year's digits process. The depreciation expense for the year 2013 is:
$_______________ (Amount)
5) On September 1, 2013, five month's rent income totaling $5,000 was received on an office rental. The advance collection was originally recorded through a credit to Rental Revenue. The required adjusting entry at December 31, 2013 would need a:
Debit to _______________ (Account Title)
For $_______________ (Amount)