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10/5/2018 Assignment Print View
http://ezto.mheducation.com/hm.tpx?todo=C15PrintView&wid=13252709753498344&role=student&sid=13252710074085580 1/11
Score: 18/20 Points 90 %
10/5/2018 Assignment Print View
http://ezto.mheducation.com/hm.tpx?todo=C15PrintView&wid=13252709753498344&role=student&sid=13252710074085580 2/11
1. Award: 2 out of 2.00 points
MC Qu. 161 On July...
On July 1 of the current calendar year, Plum Co. paid $7,500 cash for management services to be performed over a two-year period beginning
July 1. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on
December 31 of the current year for Plum would include:
A debit to an expense and a credit to a prepaid expense for $5,625.
A debit to a prepaid expense and a credit to Cash for $5,625.
A debit to an expense and a credit to a prepaid expense for $1,875.
A debit to a prepaid expense and a credit to an expense for $1,875.
A credit to a liability and a debit to a prepaid expense for $1,875.
$7,500/24 months = $312.50 per month. $312.50 per month x 6 months = $1,875.
References
Multiple Choice Difficulty: 2 Medium
MC Qu. 161 On July... Learning Objective: 03-P1
Prepare and explain adjusting
entries.
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10/5/2018 Assignment Print View
http://ezto.mheducation.com/hm.tpx?todo=C15PrintView&wid=13252709753498344&role=student&sid=13252710074085580 3/11
2. Award: 2 out of 2.00 points
MC Qu. 245 Which of the following accounts...
Which of the following accountsis a permanent (real) account?
Fees earned.
Office supplies expense.
Interest revenue.
Accounts payable.
Salaries expense.
References
Multiple Choice Difficulty: 2 Medium
MC Qu. 245 Which of
the following accounts...
Learning Objective: 03-P4
Describe and prepare closing
entries.
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10/5/2018 Assignment Print View
3. Award: 2 out of 2.00 points
MC Qu. 249 Closing entries are required:
Closing entries are required:
If management has decided to cease operating the business.
Only if the company adheres to the accrual method of accounting.
If a company's bookkeeper does not choose to prepare reversing entries.
If the temporary accounts are to reflect correct amounts for each accounting period.
