15.

Rocky Company borrowed $10,000 on February 1, 20X1. The loan has an annual interest rate of 14%. Rocky Company repaid the loan in full (both principal and interest) on January 31, 20X2; no payments were made on the loan between February 1, 20X1 and January 31, 20X2. [Note: The correct adjusting entry with respect to this loan was recorded on December 31, 20X1.] The single journal entry to record the repayment of the loan (both principal and interest) on January 31, 20X2 includes a

Debit to Interest Expense for $1,283

Credit to Interest Expense for $1,283

Debit to Interest Expense for $1,167

Credit to Interest Expense for $1,167

Debit to Interest Expense for $1,400

Credit to Interest Expense for $1,400

Debit to Interest Payable for $1,283

Credit to Interest Payable for $1,283

16.

On June 1, 20X1, MaScare Company paid $3,600 for an insurance policy on some equipment that will be in effect for the 12 months from June 1, 20X1 through May 31, 20X2. MaScare recorded this payment on June 1 by debiting Insurance Expense. On September 1, 20X1, MaScare paid an additional $4,800 for an insurance policy on a building that will be in effect for the 12 months from September 1, 20X1 through August 31, 20X2. MaScare recorded this payment on September 1 by debiting Prepaid Insurance. On December 31, 20X1, MaScare makes one summary adjusting entry to make sure that the amount of Insurance Expense for 20X1 and the Prepaid Insurance amount as of December 31, 20X1 are both correct. The necessary summary adjusting entry includes a

Debit to Insurance Expense of $1,500

Debit to Insurance Expense of $100

Debit to Insurance Expense of $2,100

Debit to Insurance Expense of $1,600

17.

The following information is for Yosef Company:

20X2

20X1

Sales

$260,000

$320,000

Accounts Payable

10,000

20,000

Retained Earnings

125,000

78,000

Inventory

40,000

50,000

Accounts Receivable

25,000

20,000

Cost of Goods Sold

180,000

200,000

For 20X2, compute the average number of days that elapse from the time Yosef purchases

inventory until the time Yosef sells that inventory.

59.7 days

122.9 days

32.2 days

91.3 days

105.2 days