Reference no: EM132771382

Problem 1: Enron Ltd paid $880, including GST, for advertising. The entry to record this transaction is:

Select one:

A DR Advertising expense $880; CR Cash $880
B DR Advertising expense $880, DR GST receivable $88; CR Cash $792
C DR Advertising expense $880; CR GST receivable $80, CR Cash $800
D DR Advertising expense $800, DR GST receivable $80; CR Cash $880

Problem 2: On 1 October 2020 Enron Ltd paid $2400 for a 12-month insurance premium. The $2400 was initially recorded in the insurance expense account. The adjusting entry required to accurately represent the expired insurance on 31 December 2020, the end of the accounting period, is:

Select one:

A DR Insurance expense $200; CR Prepaid insurance $200
B DR Prepaid insurance $1200; CR Insurance expense $1200
C DR Prepaid insurance $600; CR Insurance expense $600
D DR Prepaid insurance $1800; CR Insurance expense $1800