On January 1 Hanigan Corporation paid $12,000 to Ryan Realty for 12 months’ rent beginning January 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on March 31, the adjusting entry to be made by Hanigan Corporation is:a.debit Rent Expense, $12,000; credit Prepaid Rent, $6,000.b.debit Prepaid Rent, $3,000; credit Rent Expense, $3,000.c.debit Rent Expense, $3,000; credit Prepaid Rent, $3,000.d.debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.The Josey Company purchased equipment for $21,000 on October 1. It is estimated that annual depreciation on the computer will be $7,000. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:a.debit Depreciation Expense, $7,000; credit Accumulated Depreciation, $7,000.b.debit Depreciation Expense, $1,750; credit Accumulated Depreciation, $1,750.c.debit Depreciation Expense, $14,000; creditAccumulated Depreciation, $14,000.d.debit Equipment, $1,750; credit Accumulated Depreciation, $1,750.Tangent Company borrowed $100,000 from the bank signing an 8%, 6-month note on September1. Principal and interest are payable to the bank on March 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on November 30, would be:a.debit Interest Expense, $8,000; credit Interest Payable, $8,000.b.debit Interest Expense, $667; credit InterestPayable, $667.c.No adjusting entry is needed on November 30.d.debit Interest Expense, $2,667; credit Interest Payable,
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