$$1,000$ will only be recognized once entire amount is paid

All of $$1,000$ is recognized as revenue

Only $$700$ of revenue is recognized

ESTION $4$

ocial owes unrecorded interest of $$200$ on a bank loan taken out on October $1,2017,$ which will be paid in January, $2018.$ The of of this adjusting entry will be:

Assets decrease, decrease stockholders' equity

ncrease assets, decrease liabilities

ncrease liabilities, increase stockholders' equity

ncrease liabilities, decrease stockholders' equity

TION $5$

Inc. pays $$1,000$ for a whole year's insurance on May $1.$ How much of this is recorded as prepaid at Dec., the company's