Question

28) During March, Getze Family Automotive installed a new engine with a billed price of $3,500. The company did not bill for the engine until April 1. Ignore the cost of the engine installed. What adjusting entry would Getze Family Automotive make on March 31?

A) Prepaid revenue         3,500

         Service revenue                              3,500

B) Service revenue           3,500

          Unearned revenue                         3,500

C) Unearned revenue      3,500

         Service revenue                              3,500

D) Accounts receivable 3,500

         Service revenue                               3,500

29) At March 31, Getze Family Automotive owes $5,400 for wages to be paid on April 8. What adjusting entry is necessary on March 31?

A) Wage expense                        5,400

         Unearned Wages                                       5,400

B) Wage expense                         5,400

         Accrued wages payable                             5,400

C) Prepaid Wages                       5,400

         Wage expense                                           5,400

D) Unearned Wages                   5,400

         Wage expense                                           5,400