18. On May 1, 2011, Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2012. The cash receipt was recorded as unearned fees. At December 31,

18. On May 1, 2011, Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2012. The cash receipt was recorded as unearned fees. At December 31, 2011, $500 of the fees had been earned. The adjusting entry on December 31, 2011 should include: (Points : 1)

A debit to Unearned Fees for $500

A credit to Unearned Fees for $500

A credit to Earned Fees for $1,000

A debit to Earned Fees for $1,000

19. On December 31, the balance in the Prepaid Insurance account was $4,500, which is the remaining balance of a twelve-month policy purchased on October 31 in the current year. How much did this policy originally cost? (Points : 1)

$5,400

$3,750

$4,909

$4,500

$6,000

20. On December 31, the balance in the Prepaid Advertising account was $176,000, which is the remaining balance of a twelve-month advertising campaign purchased on August 31 in the current year. Assuming the cost is spread equally over each month how much did this advertising campaign cost in total? (Points : 1)

$286,000

$176,000

$264,000

$154,000

$22,000

21. A trial balance prepared before any adjustments have been recorded is: (Points : 1)

An adjusted trial balance

Used to prepare financial statements

An unadjusted trial balance

Correct with respect to proper balance sheet and income statement amounts

Only prepared once a year

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