Question

41. Ford Company Retained Earnings increased $20,000 during the year and the Company paid dividends of $4,000. What was the net income (loss) for the year?

		$24,000.
		$34,000.
		$(24,000).
		$4,000.
		Some other amount.

43. Missouri Magazine Publishing Company sells magazine subscriptions on an annual basis covering 12 issues. Subscriptions totaling $24,000 were sold in November, and the first magazines are delivered in December. The total amount collected was recorded in Unearned Magazine Revenues. The adjusting entry required at December 31 would include:

		a debit to Unearned Magazine Revenues for $22,000.
		a credit to Unearned Magazine Revenues for $22,000.
		a debit to Magazine Revenues for $2,000.
		a credit to Magazine Revenues for $2,000.
		a credit to Unearned Magazine Revenues for $2,000.

49. Pal Company made an advance payment of $3,500 for seven months' rent on November 1, 2004 and debited an asset account. The December 31 adjusting entry for rent expense should be:

		a debit to Rent Expense for $2,500.
		a debit to Rent Expense for $1,000.
		a credit to Prepaid Rent for $3,500.
		a credit to Unearned Rent for $1,000.
		a debit to Unearned Rent for $1,000.

52. Office equipment was purchased on December 1, 2004, for $3,000 and has an estimated useful life of five years and no residual value. The adjusting entry required at the end of December, 2004 includes a:

		Debit to Accumulated Depreciation: Office Equipment for $50.
		Credit to Accumulated Depreciation: Office Equipment for $600.
		Credit to Office Equipment for $600.
		Debit to Depreciation Expense for $50.
		none of the above.

Answer 1