23. The accourtant for Mega Stores, Inc, should have recorded the following correct entry Jan 15 Notes Receivable 243 he misunderstood the transaction and recorded an incorrect entry, Which of the following w rong entries pertaining to this transaction could have been detected as erroneous when using a trial balance? A) Jan 15 Equipment Notes Roceivable B) Jan 15 Notes Payable C) Jan 15 Notes Receivable 243 234 D) Jan 15 Notes Receivable 234 234 Page 6 24. The primary purpose of the trial balance is to A) make sure a journal entry is not posted twice B) transfer journal entries to the ledger accounts C) prove the equality of the debit and credit asounts afher posting. D) disclose the complete effect of a transaction in one place. 25. On July 1 the Fisher Shoe Stcee paid $24,000 to Acme Realty for 6 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 the Fisher Shoe Store is: A) debit Rent Expense, $4,000; credit Prepaid Rent, $A,000. B) debit Rent Expense, $24,000 credit Prepaid Rent, $20,000 C) debit Pepaid Rent, $4,000, credit Rent Expense, $4,000 D) debit Rent Expense,24,000 credit Prepaid Rent, $4,000 26. If a company fails to adjust foe accrued expenses, what effect will this have on that month's financial statements? A) B) C) D) Expenses will be understated and net income and stockholders' equity will be Assets will be overstated and net income and stockholders' equity will be Assets will be overstated and net income and stockholders' equity will be Failure to make an adjustment does not affect the financial statements. 27, Ye Olde Christmas shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The sote is signed on Ocsober I in the amount of$30,000 with annual interest of6% what is the adjusting estry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? A) Interest Expense B) Interest Expense C) Interest Expense D) Interest Expeme Interest Payable Interest Payable Note Payalbie Interest Payable 450 150 1,800 300 150 ,800 300