Reference no: EM133103187

Questions -

Q1. On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $55,400. In 2021, $93,000 was paid for insurance. At the end of 2021, after adjusting entries were recorded, the balance in the prepaid insurance account was $45,500. Insurance expense for 2021 was:

$102,900

$148,400

$9,900

$93,000

Q2. On September 1, 2021, Fortune Magazine sold 480 one-year subscriptions for $72 each. The total amount received was credited to Deferred subscription revenue. What is the required adjusting entry on December 31, 2021?

DR: Deferred subscription revenue 11,520 CR: Subscription revenue 11,520

DR: Deferred subscription revenue 11,520 CR:Subscription payable 11,520

DR: Deferred subscription revenue 34,560 CR: Subscription revenue 11,520 CR: Prepaid subscriptions 23,040

DR: Deferred subscription revenue 23,040 CR: Subscription revenue 23,040

Q3. Cal Farms reported supplies expense of $2,900,000 this year. The supplies account decreased by $220,000 during the year to an ending balance of $340,000. What was the cost of supplies the Cal Farms purchased during the year?

$2,680,000

$3,240,000

$3,120,000

$2,560,000

Q4. On November 1, 2021, Tim's Toys borrows $30,600,000 at 7% to finance the holiday sales season. The note is for a six-month term and both principal and interest are payable at maturity. What is the balance of interest payable for the loan as of December 31, 2021?

$357,000

$178,500

$89,250

$1,071,000

Q5. Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021:

Accounts receivable $12,400

Inventory 41,000

Patent 12,300

Investments 31,200

Prepaid insurance 7,100

Notes receivable, due 2024 50,500

Investments consist of treasury bills that were purchased in November 2021 and mature in January 2022. Prepaid insurance is for two years. What amount should be included in the current assets section of Janson's December 31, 2021, balance sheet?

$88,150

$56,950

$91,700

$138,650

Q6. Lanson Corporation Co.'s trial balance included the following account balances at December 31, 2021:

Accounts payable $26,800

Bonds payable, due 2030 24,900

Salaries payable 16,900

Notes payable, due 2022 22,000

Notes payable, due 2026 40,800

What amount should be included in the current liabilities section of Lanson's December 31, 2021, balance sheet?

$65,700

$43,700

$106,500

$68,600