61 what type of account is prepaid rent and what is its normal balance a expense and 4311575

61) What type of account is Prepaid rent and what is its normal balance?

A) Expense and debit

B) Liability and credit

C) Revenue and credit

D) Asset and debit

62) What is the term for the difference between the Equipment account and the Accumulated depreciation  account?

A) Contra asset

B) Market value

C) Historical cost

D) Book value

63) A company received $5,000 for 100 one-year subscriptions on July 1.  The journal entry to record this cash receipt would include a:

A) debit to Unearned revenue.

B) debit to Prepaid expenses.

C) credit to Unearned revenue.

D) credit to Cash.

64) Hank's Tax Planning Service started business in January, 2012.  He rented an office for $900 a month starting January 1.  He prepaid the rentals through June 30.   He makes accrual adjustments monthly.   As of April 30, Hank's ledger shows a balance in Prepaid rent of how much?

A) $1,800

B) $900

C) $2,700

D) $5,400

65) Hank's Tax Planning Service has a beginning balance in the supplies account of $800.  During the current month, he purchased an additional $2,000 of supplies.  At the end of the month, he had $250 of supplies left.  The amount of supply expense to be recorded for the month is:

A) $1,750.

B) $2,000.

C) $250.

D) $2,550.

66) Hank's Tax Planning Service bought computer equipment for $19,200 on January 1, 2012.  It has an estimated useful life of 4 years.  Hank records depreciation monthly.  As of September 30, 2012, Hank has recorded total depreciation expense for this equipment of:

A) $2,400.

B) $3,600.

C) $400.

D) $14,400.

67) Hank's Tax Planning Service bought communications equipment for $7,200 on January 1, 2012.  It has an estimated useful life of 5 years.  Hank records depreciation monthly.  As of June 30, 2012, the balance in the Accumulated depreciation account for this equipment is:

A) $1,440.

B) $600.

C) $120.

D) $720.

68) Hank's Tax Planning Service bought communications equipment for $7,200 on January 1, 2012.  It has an estimated useful life of 5 years.  Hank records depreciation monthly.  As of June 30, 2012, Hank's balance sheet will show book value for this equipment of:

A) $6,480.

B) $7,200.

C) $120.

D) $720.

69) Hank's Tax Planning Service has the following plant assets:

Communications equipment: Cost, $4,800; useful life 8 years

Furniture: Cost, $15,840; useful life 12 years

Computer equipment: Cost, $10,080; useful life 4 years

Hank's monthly depreciation expense is:

A) $2,560.

B) $4,440.

C) $210.

D) $370.

70) Hank's Tax Planning Service has the following plant assets:

Communications equipment: Cost, $4,800; useful life 8 years

Furniture: Cost, $15,840; useful life 12 years

Computer equipment: Cost, $10,080; useful life 4 years

Hank's monthly depreciation entry will include a:

A) debit to depreciation expense of $210.

B) credit to depreciation expense of $370.

C) debit to Accumulated depreciation of $210.

D) credit to Accumulated depreciation of $370.

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