Question

The following information applies to the questions displayed below.) Omega Company adjusts its accounts at the end of each month. The following information has been assembled 11 to prepare the required adjusting entries at December 31: (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1 (2) The company pays all employees up-to-date each Friday. Since December 31 fell on Tuesday, there was a lial to employees at December 31 for two day's pay amounting to $6,800. (3) On December 1, rent on the office building had been paid for four months. The monthly rent is $6,000. (4) Depreciation of office equipment is based on an estimated useful life of six years. The balance in the Office Equipment account is $9,360; no change has occurred in the account during the year. (5) Fees of $9,800 were earned during the month for clients who had paid in advance. 20) 20) The entry to record rent expense will include: A) A debit to Prepaid Rent for $6,000. C) A debit to Prepaid Rent for $18,000 B) A credit to Prepaid Rent for $18,000. D) A credit to Prepaid Rent for $6,000. 21) 21) Only two adjustments appear in the adjustments column of a worksheet for Wyclin Publications: one to record $800 depreciation of office equipment and the other to record the use of $560 of office supplies. If the Trial Balance column totals are $15,380, what are the totals of the Adjusted Trial Balance columns? A) $16,180 B) $15,860 C) $16,740 D) $15,140 22) The accounting systems of most business organizations: A) Are designed by the CPA firm that performs the annual financial audit. B) Are similar in design to the journals, ledgers, and worksheets illustrated in this text. C) Are tailored to meet the organization's needs for accounting information and the resources available for operating the system. D) Utilize data bases, rather than ledger accounts.

Answer 1

(20) (C) A debit to Prepaid Rent for $18000 (21) (6 $16740 old balance $15380 't Depreciation - (+) office supplies & (92) (c)