Question

1-) On December​ 31, 2018 the balance in Energy Exploration​ Company's Unearned Revenue account was a credit of​ $10,000. In​ January, 2019, the company received an advance payment of​ $11,000 from a new customer for services to be performed. By January​ 31, adjustments were made to recognize​ $6,000 of the revenue that had been earned during January. What was the balance in Unearned Revenue on January​ 31, 2019?

A.

​$11,000 debit

B.

​$6,000 credit

C.

​$10,000 credit

D.

​$15,000 credit

2 )-

Which of the following statements is true of a trial​ balance?

A.

A trial balance is prepared after the balance sheet.

B.

A trial balance shows the total amounts of assets and​ liabilities, but not equity.

C.

A trial balance has the same format as a balance sheet.

D.

A trial balance presents data in debit and credit format.

3-)

On June​ 1, Edison, Inc. borrowed​ $21,000 on a

oneminus−year

Note Payable with an interest rate of​ 10% per year. It will repay the principal and interest at the end of the

oneminus−year

period. The company makes accrual adjustments at the end of each month. The company should record interest expense of​ $2,100 on June 30.

Answer 1

1) Balance in unearned revenue = 10000+11000-6000 = 15000

So answer is d) $15000 Credit

2) Which of the following statements is true of a trial​ balance?

Trial balance is prepared before balance sheet and its includes total assets, liabilities and equity and it has debit and credit format not balance sheet format

So answer is d) A trial balance presents data in debit and credit format.

3) Interest expense on June 30 = 21000*10%*1/12 = 175

so answer is $175