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Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase? Cost of 3,000 3,000 of Accounts payable QUESTION 8 pe Eve's Apples opened its business on January 1, 2018, and paid for two insurance policies effective that date. The liability policy was $36,000 for 18 months, and the crop damage polioy was $12,000 for a two-year 20187 term. What is the balance in Eve's prepaid insurance as of December 31 $30,000. $9,000. O $18,000. $48,000. QUESTION 9 In its first year of operations Acme Corp. had income before tax of $400,000. Acme made income tax payments totaling $150,000 during the year and has an income tax rate of 40%, what is the balance in income tax payable at the end of the year? $10,000 credit. $160,000 credit. $10,000 debit $150,000 credit. Which of the following is not an adjusting entry Deferred revenue QUESTION 11 O A credit to an asset. OA credit to a liability. O A debit to a liability O A debit to an asset. QUESTION 12 Somerset eived $12,000 for 24 months' rent in advance. How should Somerset record this transaction? 12,000 12,000 Rent ex 12,000 to save all a pay period ends on F for the three months ended June 30. What is the 32 QUESTION 18 16 QUESTION 19 to save all

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