Questions 1 - 5 related CSO 1.1 Objective 1: Prepare appropriate journal entries, adjusting journal entries, and closing journal entries. Diaz Corporation purchased a computer system for $20,000. The company paid $5,000 cash and issued a $15,000 note payable for the entire balance. The journal entry to record this transaction includes a(n) A. debit to Expense for $20,000 3. credit to Cash for $20,000 debit to Equipment for $20,000 credit to Accounts Payable for $15,000 Bay City Corporation received $21,000 for 12 months rent in advance. What entry is used to record this transaction? 21,000 21,000 21,000 21,000 A Cash Prepaid Rent B. Cash Unearned Revenue Rent Expense Cash D. Unearned Revenue Rent Revenue 21,000 21,000 21,000 21,000 Jones Company sold merchandise on account for $90,000. This merchandise cost $52,000. The company uses the perpetual method of accounting for inventory. What would be the correct journal entry to record the transaction? 38,000 52,000 90,000 90,000 90,000 90,000 Al Accounts Receivable Cost of Goods Sold Sales B. Accounts Receivable Sales C. Accounts Receivable Sales Cost of Goods Sold Merchandise Inventory D. Accounts Receivable Merchandise Inventory Gain on Sale 90,000 52,000 52,000 90,000 52,000 38,000