Depending on the following information answer the following questions from . Baraka Corporation was founded in January 2020. Presented below a partial trial balance as of June 30,2020. Account Title Supplies Prepaid Insurance Accounts Payable Bond Payable Baraka -capital Service Revenue Salaries and Wages Expense Rent Expense Utilities Expense Office Expense Dr 2000 1200 20,000 10,000 1300 2000 A. Dr/ Prepaid Insurance 1000 B. Dr/ Prepaid Insurance 2000 C. Dr/ Insurance Exp 600 D. Dr/ Insurance Exp 1200 Cr 1. Interest accrued on the bonds payable is 1,500 as of June 30 2020. The Adjusting entry is 2. Dr/ Bond payable 1500 3. Dr/ interest Expense 1500 4. Dr/ Cash 1500 5. Dr/ Interest expense 1500 5000 50,000 47,000 2- Services performed for clients that were not recorded by June 30, $4000. The adjusting entry at 30/June/2020 will be A. Dr/ Account receivable 4000 B. Dr/ Service Revenue 4000 C. Dr/ Unearned Service Revenue 4000 D. Dr/ Service Revenue 4000 A. Dr/ Supplies Exp 500 B. Dr/ Supplies Exp 1500 C. Dr/ Supplies 1500 D. None of the above is correct Cr/ Service revenue 1500 Cr/ Interest Payable 1500 Cr/ Interest revenue 1500 Cr/ Bond Payable 1500 3-The insurance policy for one year, started from 1/1/2020. The adjusting entry at 30/June/2020 will be A. Dr/ Salaries and wages Exp 20,600 B. Dr/ Salaries and wages Exp 19,400 C. Dr/ Salaries and wages Payable 600 D. Dr/ Salaries and wages Exp 600 Cr/ Service Revenue 4000 Cr/Unearned Service Revenue 4000 Cr/ Service Revenue 4000 Cr/ Accrued Revenue 4000 1000 Cr/ Insurance Exp Cr/ Insurance Exp 2000 Cr/ Prepaid Insurance 600 Cr/ Prepaid Insurance 1200 4-Salaries and wages $ 600 that not paid yet till 30/June/2020. The adjusting entry at 30/June/2020 will be Cr/ Salaries and Wages Payable 20,600 Cr/ Salaries and Wages Payable 19,400 Cr/ Salaries and Wages Exp 600 Cr/ Salaries and Wages Payable 600 5- The supplies reveal still on hand at the end of June was $500. The adjusting entry at 30/June/2020 will be Cr/ Supplies 500 Cr/ Supplies 1500 Cr/ Supplies Exp 1500

Depending on the following information answer the following questions from . Baraka Corporation was founded in January 2020. Presented below a partial trial balance as of June 30,2020. Account Title Supplies Prepaid Insurance Accounts Payable Bond Payable Baraka -capital Service Revenue Salaries and Wages Expense Rent Expense Utilities Expense Office Expense Dr 2000 1200 20,000 10,000 1300 2000 A. Dr/ Prepaid Insurance 1000 B. Dr/ Prepaid Insurance 2000 C. Dr/ Insurance Exp 600 D. Dr/ Insurance Exp 1200 Cr 1. Interest accrued on the bonds payable is 1,500 as of June 30 2020. The Adjusting entry is 2. Dr/ Bond payable 1500 3. Dr/ interest Expense 1500 4. Dr/ Cash 1500 5. Dr/ Interest expense 1500 5000 50,000 47,000 2- Services performed for clients that were not recorded by June 30, $4000. The adjusting entry at 30/June/2020 will be A. Dr/ Account receivable 4000 B. Dr/ Service Revenue 4000 C. Dr/ Unearned Service Revenue 4000 D. Dr/ Service Revenue 4000 A. Dr/ Supplies Exp 500 B. Dr/ Supplies Exp 1500 C. Dr/ Supplies 1500 D. None of the above is correct Cr/ Service revenue 1500 Cr/ Interest Payable 1500 Cr/ Interest revenue 1500 Cr/ Bond Payable 1500 3-The insurance policy for one year, started from 1/1/2020. The adjusting entry at 30/June/2020 will be A. Dr/ Salaries and wages Exp 20,600 B. Dr/ Salaries and wages Exp 19,400 C. Dr/ Salaries and wages Payable 600 D. Dr/ Salaries and wages Exp 600 Cr/ Service Revenue 4000 Cr/Unearned Service Revenue 4000 Cr/ Service Revenue 4000 Cr/ Accrued Revenue 4000 1000 Cr/ Insurance Exp Cr/ Insurance Exp 2000 Cr/ Prepaid Insurance 600 Cr/ Prepaid Insurance 1200 4-Salaries and wages $ 600 that not paid yet till 30/June/2020. The adjusting entry at 30/June/2020 will be Cr/ Salaries and Wages Payable 20,600 Cr/ Salaries and Wages Payable 19,400 Cr/ Salaries and Wages Exp 600 Cr/ Salaries and Wages Payable 600 5- The supplies reveal still on hand at the end of June was $500. The adjusting entry at 30/June/2020 will be Cr/ Supplies 500 Cr/ Supplies 1500 Cr/ Supplies Exp 1500

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Activities Required In Completing A Quality Audit

Section: Chapter Questions

Problem 65RSCQ

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