Accouting Essay

No entry was made at the time the service was provided. If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause:| A)| revenues to be overstated. | B)| net income to be overstated. | C)| liabilities to be understated. | D)| revenues to be understated. | 5. | The Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only ,000 on hand.

Financial statements are prepared monthly by Village Laundry.

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The adjusting journal entry that should be made by the company on June 30 is:| debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,500. 6. | Dorting Company purchased a computer system for $5,400 on January 1, 2010. The company expects to use the computer system for 3 years. It has no salvage value. Calculate the monthly depreciation expense on the asset

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