Question

please solve all

QUESTION 37 many for the transaction On Apr 120X1, Pears Corp paid rent for a warehouse total 53,000 cash for April May, and June (51.000 per month) What was the Debit Prepaid Rent $3.000, credit Rent Payable $3,000 e Debit Rent Expense $3,000, credit Cash $3,000 Debit Prepaid Rent $3,000 credit Cash 53,000 Debit Cash $3.000, credit Rent Expense $3,000 None of these

Answer 1

Solution 37)

Correct Answer : Option b. Debit Rent Expense $3,000 ; credit Cash $3,000.

Reasson : Rent paid for April, May, June is of current year and thus full $3,000 expense willbe debited and Cash is paid so it will be credited.

Solution 38)

Correct Answer : Option d. Debit Utility Expenses ; credit Accrued expenses payable for $300

Reasson : Utility expense is estimated at $300 hence debited as expense and a liability is created (Accrued expenses payable) with same amount.

Solution 40)

Correct Answer : Option d. None of these.

Reasson : All the accounts mentioned are brought to ZERO accounts.

Solution 41)

Correct Answer : Option e. Debit Retained Earnings, credit Dividends.

Reasson : Dividend account has a debit balance and hence in order to close it , it is credited. Retained earnigs are used to pay the dividends hence Retained Earnings is debited.

In case of any Issues or doubts, please comment below