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$-$A cash basis, calendar$-$year taxpayer purchased on annuity policy at a total cost of $$20,000.$ Starting on January $1,2022,$ he began to receive annual payments of $$1,500.$ His life expectancy as of that date was $16$ years. The amount of annuity income to be included in his gross income for the taxable year $2022$ is$.$

$-$The budget for a given cost during a given period was $$100,000.$ The actual cost for the period was $$90,000.$ Based upon these facts, one should say that the responsible manger has done a better$-$than$-$expected job in controlling the cost if the cost is $\_\_\_\_\_\_\_$budgeted production.

$-$The IPC Corporation has an intangible asset which it values at $$1,000,000$ and has a life expectancy of $60$ years. The appropriate span of write$-$off, as determined by good accounting practice, should be $\_\_\_\_\_\_\_$ years.

If a $$400,000$ par value bond issue paying $8\%,$ with interest dates of June $30$ and December $31,$ is sold in November $1$ for par plus accrued interest, the cash proceeds received by the issuer on November $1$ should be APPROXIMATELY.

$-$Assume the following transactions have occurred:

$1)10,000$ shares of capital stock of Omer Corp., par value $$50,$ have been sold and issued on initial sale @ $$55$ per share during the month of June.

$2)2,000$ shares of previously issued stock were purchased from shareholders during the month of September @ $$58$ per share.

As of September $30,$ the stockholders$$ equity section TOTAL should be $\_\_\_\_\_\_$

$-$Mr$.$ Diak, a calendar$-$year taxpayer in the construction business, agrees to construct a building for the Supermat Corporation to cost a total of $$500,000$ and to require about $2$ years to complete. By December $31,2021,$ he has expended $$150,000$ in costs, and it was determined that the building would was $35\%$ completed. If Mr$.$ Diak is reporting income under the completed contract method, the amount of gross income he will report for $2021$ is $\_\_\_\_\_\_$

$-$On December $1$ a company paid $$1,200$ for the insurance premium covering the cost of insurance from December $1$ through May $31.$ When making the payment on December $1,$ the company debited Prepaid Insurance for $$1,200$ and it credited Cash for $$1,200.$ The adjusting entry to be made as of December $31$ will include a debit to the account $\_\_\_\_\_\_\_\_\_\_\_$and a credit to the account $\_\_\_\_\_\_\_\_$for $$\_\_\_\_\_\_\_($omit cents$).$

$-$ One December $1$ a company paid $$1,200$ for the insurance premium covering the cost of insurance from December $1$ through May $31.$ When making the payment on December $1,$ the company debited Insurance Expense for $$1,200$ and it credited Cash for $$1,200.$ The adjusting entry to be made as of December $31$ include a debit to the account $\_\_\_\_\_\_\_\_\_\_\_\_$and credit to the account $\_\_\_\_\_\_\_\_$for $$\_\_\_\_\_\_\_\_\_($omit cents$).$

$-$ A retailer opened its store for business on December $10.$ Its electric meter was read by the electric utility for the first time on January $9$ and the resulting bill was $$300.$ The adjusting entry to be made as of December $31$ will include a debit to the account Electricity $\_\_\_\_\_\_\_\_$for $$\_\_\_\_\_\_\_\_\_\_($round to the nearest $$100).$

$-$On December $1,2011$ Hosting Services LLC received $$120,000$ from customers who paid for twelve months of service $($December $1,2011$ through November $30,2012).$ The $$120,000$ received on December $1$ was debited to Cash and credited to Hosting Revenues. The adjusting entry to be made as of December $31$ will include a debit to the account $\_\_\_\_\_\_\_\_\_\_$for $$\_\_\_\_\_\_\_\_\_\_($omit cents$).$

$-$On December $1,2011$ Hosting Services LLC received $$120,000$ from customers who paid for $12$ months of service $($December $1,2011$ through November $30,2012).$ The $$120,000$ received on December $1$ was debited to Cash and credited to Unearned Hosting Revenues. The adjusting entry to be made as of December $31$ will include a debit to the account $\_\_\_\_\_\_\_\_\_\_\_$for $ $\_\_\_\_\_\_\_\_\_\_($omit cents$).$

Using the following information for answering Questions $1-4$:

A law firm received an advance payment of $$15,000$ on December $1$ for fees that will be earned evenly in December, January, and February. The entire $$15,000$ was credited to Unearned Fees on December $1.$

$1)$ The adjusting entry to be made as of December $31$ will include a debit to the account $\_\_\_\_\_\_\_\_$for $$\_\_\_\_\_\_\_\_\_($omit cents$).$

$2)$ If the firm fails to make an adjusting entry on December $31,$ its net income will be $$\_\_\_\_\_\_\_\_$too $\_\_\_\_\_\_\_\_($high$,$ low$).$

$3)$ If the firm fails to make an adjusting entry on December $31,$ its liability will be $\_\_\_\_\_\_\_\_\_\_\_\_\_($overstated$,$ understated$)$ by $$\_\_\_\_\_\_\_\_\_.$

$4)$ If the firm fails to make an adjusting entry on December $31,$ its owner$$s equity will be $\_\_\_\_\_\_\_\_\_($overstated$,$ understated$)$ by $$\_\_\_\_\_\_\_\_\_\_\_.$

$$On February $1$st$,$ your accrual$-$based accounting company incurs $$500$ for services. On February $25$th your company pays $$300$ towards the services and then on March $5$th pays the $$200$ balance. The $$200$ payment made in March should be recorded in which of the following ways?

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