A prepaid expense (such as supplies or prepaid rent) can initially be recorded as either an expense or as an asset. Demonstrate your understanding of adjusting for prepaid expenses by selecting the statement that is correct. Multiple choice question. If prepaid expense was initially recorded as an asset, then net income will be lower. No matter how a prepaid expense was initially recorded, after adjustment, the financial statements will be identical. If prepaid expense was initially recorded as an asset, then assets will be higher on the balance sheet. If a prepaid expense was initially recorded as an expense, then expenses will be higher on the income statement.

Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.

Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?

Which of the following statements is true about an atm card?