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1.
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A
business pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The
adjusting entry neces-sary at the end of the fiscal period ending on Wednesday is: a. | debit Salaries
Payable, $18,000; credit Cash, $18,000 | b. | debit Salary Expense, $18,000; credit Drawing,
$18,000 | c. | debit Salary Expense, $18,000; credit Salaries Payable,
$18,000 | d. | debit Drawing, $18,000; credit Cash,
$18,000 | | |
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2.
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The
balance in the prepaid insurance account before adjustment at the end of the year is $10,000. If the
additional data for the adjusting entry is (1) the amount of insurance expired during the year is
$8,500, as compared to additional data stating (2) the amount of unexpired insurance applicable to a
future period is $1,500, for the adjusting entry: a. | the debit and credit amount for (1) would be the same as (2)
but the accounts would be different | b. | the accounts for (1) would be the same as the accounts for (2)
but the amounts would be different | c. | the accounts and amounts would be the same for both (1) and
(2) | d. | there is not
enough information given to determine the correct accounts and amounts | | |
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3.
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The
entry to adjust the accounts for wages accrued at the end of the accounting period
is: a. | Wages Payable,
debit; Wages Income, credit | b. | Wages Income, debit; Wages Payable,
credit | c. | Wages Payable, debit; Wages Expense,
credit | d. | Wages Expense, debit; Wages Payable,
credit | | |
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