1:

Which item may be listed under either current or long-term liabilities?

salaries and wages payable.

notes payable.

accounts payable.

taxes payable.

2:The following items are taken from the financial statements of the Metlock Service for the year ending December 31, 2020:

Accounts payable	$ 17700
Accounts receivable	11000
Accumulated depreciation equipment	28400
Advertising expense	20600
Cash	14700
Owners capital (1/1/20)	42000
Owners drawings	14100
Depreciation expense	12200
Insurance expense	3000
Note payable, due 6/30/21	71000
Prepaid insurance (12-month policy)	5600
Rent expense	16900
Salaries and wages expense	32500
Service revenue	131300
Supplies	4000
Supplies expense	6100
Equipment	229200

What are total current liabilities at December 31, 2020?

$ 182500

$ 17700

$ 71000

$ 88700

3:On July 1, Crane's Sports Store paid $14040 to Blossom Realty for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by Cranes Sports Store is

Debit Rent Expense, $14040; Credit Prepaid Rent, $3510.

Debit Rent Expense, $14040; Credit Prepaid Rent, $14040.

Debit Prepaid Rent, $3510; Credit Rent Expense, $3510.

Debit Rent Expense, $3510; Credit Prepaid Rent, $3510.