1-2-3 On December 31, 2023, Sunset Company prepared adjusting entries including the following: (1) Depreciation: $42,000. (2) Sales proceeds earned: $34,000. (3) Expenses noted: $15,000. (4) Insurance consumed: $2,000; the insurance was initially recorded as a prepaid expense. (5) Rental revenue earned: $4,500; the rent was initially paid in advance by the tenant and credited to Deferred Rental Revenue. If Sunset Company reported pre-tax profit of $423,000 before the adjusting entries, how much was Sunset's pre-tax profit after the adjusting entries? 404500 400000 424500 402500
1-2-3
On December 31, 2023, Sunset Company prepared
404500
400000
424500
402500
On March 1, 2023, the premium for a one-year insurance policy was purchased for $3,000 in cash, with insurance coverage taking effect on that date. The accounting books are only regularized at the end of the year. Which of the following statements correctly describes the effect of the December 31, 2023 adjusting entry on the financial statements?
Prepaid insurance will increase by $2,500.
Prepaid insurance will increase by $500.
Insurance charge will increase by $500.
Insurance charge will increase by $2,500.
On January 1, 2023, two individuals invested $170,000 each to create Bluest Corp. Bluest's total revenues were $17,000 in 2023 and $60,000 in 2024. Total expenses for the same periods were $10,000 and $31,000, respectively. Cash dividends paid to shareholders amounted to $4,000 in 2023 and $8,000 in 2024. What was the balance in Bluest's Retained Earnings account at the end of 2023 and 2024?
$3,000 and $24,000, respectively.
$3,000 and $4,000 respectively.
$24,000 and $32,000 respectively.
$343,000 and $344,000 respectively.
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