Chapter 3 (Protected View) Qast saved by user) -Word (Unlicensed Product) Layout References om the Internet can contain viruses. Unless you need to edt, it's safer to stay in Protected Viw Mailings Review View Help Tell me whst you want to do Enable E 13) A new accountant working for Brady Company records $700 Depreciation Expense on store equipment as follows Dr. Depreciation Expense 700 700 Cr The effect of this entry is to a. adjust the accounts to their proper amounts on December 31 b. understate total assets on the balance sheet as of December 31 c. overstate the book value of the depreciable assets at December 31 d. understate the book value of the depreciable assets as of December 31 Cash The balance in the Prepaid Rent account before adjustment at the end of the year is $24.000, which represents three months rent paid on December 1. The adjusting entry required on December 31 is to a. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 b. debit Rent Expense, $16,000, credit Prepaid Rent $16,000. c. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000 d. debit Prepaid Rent, $16,000, credit Rent Expense, $16,000 14) 15). An accumulated depreciation account a. is a contra-liability account. b. increases on the debit side c. is offset against total assets on the balance sheet d. has a normal credit balance 16). The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the a. market value of the asset b. blue book value of the asset c. book value of the asset d. depreciated difference of the asset 17) Unearned revenue is classified as