X Company, a merchandiser, prepares monthly financial statements. On June 30, its accountant made adjusting entries to record: • $5,909 of June interest on a bank loan to be paid in July • $1,782 of wages that were earned by employees in June but to be paid in July • $4,656 of rent and insurance for June that was prepaid on June 1 but had expired • $3,594 of depreciation on factory equipment • a $2,556 June utility bill received in June, to be paid in July What would be the effect of these entries on total liabilities in June? O A: $10,247 OB: $13,629 OC: $18,126 OD: $24,107 OE: $32,063OF: $42,644

X Company, a merchandiser, prepares monthly financial statements. On June 30, its accountant made adjusting entries to record: • $5,909 of June interest on a bank loan to be paid in July • $1,782 of wages that were earned by employees in June but to be paid in July • $4,656 of rent and insurance for June that was prepaid on June 1 but had expired • $3,594 of depreciation on factory equipment • a $2,556 June utility bill received in June, to be paid in July What would be the effect of these entries on total liabilities in June? O A: $10,247 OB: $13,629 OC: $18,126 OD: $24,107 OE: $32,063OF: $42,644

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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