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When a note is paid at maturity, the credit is to Cash. The debit(s) are to
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
Adjusting entries for prepaid expenses recognize the portion of the asset used in the current period as an asset.
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
Companies reverse accrued salary entries so that they do not have to remember that the payroll liability accounts reflect an expense from the previous accounting period.
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
The closing entry for Office Supplies Expense would be a debit to Office Supplies Expense and a credit to Income Summary.
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
If corporations record employee income tax payable, they do not need to record federal income tax expense.
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
On Dec. 31, Wilson, Inc., owes 10 days worth of accrued interest on a $5,000 note payable at 9% interest. The adjusting entry includes a debit to Interest Expense for
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
An entry that is the exact opposite of an adjusting entry is known as a(n)
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
Expenses paid in one fiscal period but not reported as expenses until a later fiscal period are known as
reversing entry
Notes Payable for the principal of the note and Interest Expense for the interest due on the note.
False
prepaid expenses
True
False
$12.50
False
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