Multiple Choice
On December 31, 2016, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $31,000.
Accrued sales revenue: $29,000.
Accrued expenses: $12,000.
Used insurance: $9,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.
If Krug Company reported pretax income of $120,000 prior to the adjusting entries, how much is Krug's pretax income after the adjusting entries?
A) $113,000.
B) $104,000.
C) $106,000.
D) $128,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Cash collected from customers in advance of
Q55: Income statement accounts are temporary accounts because
Q56: Closing the revenue and gain accounts at
Q61: Deferred expenses are initially recorded as assets
Q108: Closing the expense and loss accounts at
Q114: On December 31, 2016, the manager of
Q116: Which of the following adjusting journal entries
Q120: Which of the following is not a
Q121: For each of the following accounts you
Q123: Four transactions described below were completed during