Question

Equipment costing $20,000 is purchased by paying $5,000 cash and signing a note payable for the remainder. The journal entry should include is debit to Notes payable credit to cash credit to Notes receivable credit to equipment The unearned Service Revenue account is classified as a(n) asset revenue expense liability The expense recognition principle matches: customers with businesses expenses with revenues assets with liabilities creditors with businesses. The following is selected information from L Corporation for the fiscal year ending October 31, 2011. Based on the accrual basis of accounting, what is L Corporation's net income for the year ending October 31, 2011? $184,000 $154,000 $152,000 $170,000 Adjusting entries are made to ensure that: expenses are recognized in the period in which they are incurred. revenues are recorded in the period in which they are earned. balance sheet and income statement accounts have correct balances at the end of an accounting period. All of the above. The Vintage Laundry Company purchased $6, 500 worth of laundry supplies on June 2 and recorded the purchased as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is: debit Laundry Supplies Expenses, $2,000; credit Laundry Supplies, $2,000. debit Laundry Supplies Expenses, $4, 500; credit Laundry Supplies, $4, 500. debit Laundry Supplies Expenses, $2,000; credit Laundry Supplies, $2,000. debit Laundry Supplies Expenses, $4, 500; credit Laundry Supplies, $4, 500.