Find the necessary adjusting entry at the company year-end

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Question 1: A cash dividend of USD 500 was declared and paid to stockholders. The correct journal entry is?

Question 2: An insurance policy premium of USD 1,200 was paid on 2010 September 1, to cover a one-year period from that date. An asset was debited on that date. Adjusting entries are prepared once a year, at year-end. The necessary adjusting entry at the company's year-end, 2010 December 31, is?

Question 3: A company purchased a truck for USD 20,000 on 2010 January 1. The truck has an estimated residual value of USD 5,000 and is expected to last five years. Adjusting entries are prepared only at year-end. The necessary adjusting entry at 2010 December 31, the company's year-end, is?

Question 4: The Supplies on Hand account has a balance of USD 1,500 at year-end. The actual amount of supplies on hand at the end of the period was USD 400. The necessary adjusting entry is?

Question 5: A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be?

Question 6: Maxwell Company records its sales taxes in the same account as sales revenues. The sales tax rate is 6 percent. At the end of the current period, the Sales account has a balance of $265,000. The amount of sales tax payable is?

Reference no: EM132577711

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