12. Before month-end adjustments are made, the January 31 trial balance of Rover Excursions contains revenue of $27,900 and expenses of $17,340. Adjustments are necessary for the following items: 

Depreciation for January, $1,440 

Portion of fees collected in advance earned in January, $3,300 

Portion of prepaid rent applicable to January, $2,700 

Fees earned in January, not yet billed to customers, S1,950 

Net income for January is: 

a. 10,560 

b. $17,070 

C. $7,770 

d. Some other amount 

13. Marietta Corporation uses a perpetual inventory system. All of its sales are made on account. The company sells merchandise costing $3,000 at a sales price of $4,300. In recording this transaction, Marietta will make all of the following entries except: 

a. Credit Sales, $4,300. 

b. Credit Inventory, $3,000. 

c. Debit Cost of Goods Sold, 53,000 

d. Debit Accounts Receivable, $4,300 

14. A transaction caused a $15,000 increase in both total assets and total liabilities. This transaction could have been: 

a. An asset with a cost of $15,000 destroyed by fire 

b. Repayment of a $15,000 bank loan. 

c. Purchase of a delivery truck for $15,000 on credit. 

d Collection of a S15,000 account receivable 

15. Which of the following explains the debit and credit rules relating to the recording revenue and expenses? 

a. Expenses appear on the left side of the balance sheet and are recorded by debits, revenue appears on the right side of the balance sheet and is recorded by credits. 

b. Expenses appear on the left side of the income statement and are recorded by debits, revenue appears on the right side of the income statement and is recorded by credits. 

c. The effects of revenue and expenses on owners' equity. 

d. The realization principle and the matching principle.