Question Parts: 2: A,B,C Robert Rogers, CPA performed accounting services for a

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Question Parts: 2: A,B,C

Robert Rogers, CPA performed accounting services for a client in December. A bill was mailed to the client on December 30 Roberts received a check in the mail on January 5 The revenue principle would require that which of the following accounts appear on the income statement for the year ended December 31? Accounts payable Prepaid expense Unearned revenue Service revenue Real Losers, a diet magazine, collected $360,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue The company uses the accrual method of accounting. What is the balance in the Unearned revenue account at the end of December? $0 $360,000 $150,000 $330,000 The table below represents Able Company's supplies account. Please supply the missing amount $5,000 $13,000 $9,000 $11,000

Explanation / Answer

1> D because the rest of the accounts are in blance sheet not income statement. Remember unearned revenue are libilities and prepaid expenses are assets 2>June to December = 7 months used==> 5 months left for unearned revenue 360,000/12 * 5 = 150,000so answer is C 3>8,000+3,000-2,000=9,000 so answer is C

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