PrimeFlix sells one-year online subscriptions for viewing classic movies. Customers are required to pay for the subscription at the beginning of the subscription period. On April 1, 2021, total sales of one-year subscriptions are $12,000. What is the adjusted balance of Deferred Revenue on December 31, 2021?
A) $9,000.
B) $3,000.
C) $0.
D) $12,000.
Answer: B
Eve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective that date. The liability policy was $36,000 for 18 months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2021?
A) $9,000.
B) $18,000.
C) $30,000.
D) $48,000.
Answer: B
A list of all accounts and their balances after updating account balances for adjusting entries is referred to as:
A) A trial balance.
B) An adjusted trial balance.
C) A post-closing trial balance.
D) An accounting trial balance.
Answer: B
