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James Bell plans to stay at the Michaels Motel for one month, and he prepays his room charges. Bell arrives and begins his stay on January 21. To account for Bell's prepayment, at the end of January (the end of the accounting period) the motel accountant should:
Answer
a.
debit Unearned Room Revenue and credit Room Revenue.
b.
credit Room Revenue and debit Cash.
c.
credit Accounts Receivable and debit Cash.
d.
debit Unearned Room Revenue and credit Cash.
Question
Accounting adjustments to account for unpaid wages would:
debit Wage Expense and credit Accrued Wages Payable.
credit both Wage Expense and Cash.
credit Wage Expense and debit Accrued Wages Payable.
debit both Wage Expense and Accrued Wages Payable.
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