At the end of the year, a company makes a journal entry to accrue the interest expense on a short-term note payable. As a result of this transaction:
A.current liabilities increase and current assets increase.
B.current liabilities increase and stockholders' equity increases.
C.current liabilities decrease and stockholders' equity decreases.
D.current liabilities increase and stockholders' equity decreases.
The journal entry to record salaries earned by 10 employees will:
A.debit Salary Expense and credit Salary Payable for the net pay.
B.debit Salary Expense and credit Salary Payable for the gross pay.
C.debit Salary Expense for the gross pay, credit FICA Tax Payable, credit Employee Income Tax Payable and credit Salary Payable for the net pay.
D.debit Salary Expense for the net pay, debit FICA Tax Payable, debit Employee Income Tax Payable, and credit Salary Payable for the gross pay.
When a business receives cash from a customer before earning the revenue, they credit:
A.Accounts Receivable.
B.Sales Tax Payable.
C.Accounts Payable.
D.Unearned Revenue.
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