MODULE 3 HOMEWORK -ADJUSTMENT ENTRIES Please review the following questions and select the correct answer. Please show me and tell me how you arrived at the correct answer clearly and thoroughly. Question 1: Interest on a loan at the bank is due as of November 1. We borrowed the $5000 three months ago at 6% annual interest. Answers: 1) No entry required 2) DR Interest Expense 5000 CR Interest Payable 5000 3) DR Interest Expense 75 CR Interest Payable 75 4) DR Interest Expense 75 CR Cash 75 Question 2: Company performed $1000 of services that the client paid for in advance. 1) DR Unearned Service Fee 1000 CR Service Fee Revenue 1000 2) DR Unearned Revenue 1000 CR Cash 1000 3) DR Cash 1000 CR Service Fee Revenue 1000 4) DR Service Fee Revenue 1000 CR Unearned Service Fee 1000 Question 3: To record depreciation on the company truck for one year. The truck's cost is 12,000 with 1,000 salvage value and an estimated life of 4 years. 1) DR Depreciation Expense 2800 CR Truck 2800 2) DR Depreciation Expense 2800 CR Accumulated Depreciation 2800 3) DR Depreciation Expense 3050 CR Accumulated Depreciation 3050 4) DR Accumulated Depreciation 3050 CR Truck 3050 5) No entry is correct Question 4: Money borrowed from the bank carries an interest rate of 6% per year. Interest was last paid a month ago and is due again in another 5 months. The amount borrowed is $20000. 1) DR Interest Expense 100 CR Interest Payable 100 2) DR Interest Expense 500 CR Interest Payable 500 3) DR Interest Expense 100 CR Cash 100 4) DR Interest Expense 600 CR Cash 600
MODULE 3 HOMEWORK -
Please review the following questions and select the correct answer. Please show me and tell me how you arrived at the correct answer clearly and thoroughly.
Question 1: Interest on a loan at the bank is due as of November 1. We borrowed the $5000 three months ago at 6% annual interest.
Answers:
1) No entry required
2) DR Interest Expense 5000
CR Interest Payable 5000
3) DR Interest Expense 75
CR Interest Payable 75
4) DR Interest Expense 75
CR Cash 75
Question 2: Company performed $1000 of services that the client paid for in advance.
1) DR Unearned Service Fee 1000
CR Service Fee Revenue 1000
2) DR Unearned Revenue 1000
CR Cash 1000
3) DR Cash 1000
CR Service Fee Revenue 1000
4) DR Service Fee Revenue 1000
CR Unearned Service Fee 1000
Question 3: To record
1) DR Depreciation Expense 2800
CR Truck 2800
2) DR Depreciation Expense 2800
CR
3) DR Depreciation Expense 3050
CR Accumulated Depreciation 3050
4) DR Accumulated Depreciation 3050
CR Truck 3050
5) No entry is correct
Question 4: Money borrowed from the bank carries an interest rate of 6% per year. Interest was last paid a month ago and is due again in another 5 months. The amount borrowed is $20000.
1) DR Interest Expense 100
CR Interest Payable 100
2) DR Interest Expense 500
CR Interest Payable 500
3) DR Interest Expense 100
CR Cash 100
4) DR Interest Expense 600
CR Cash 600
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