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GXC IncCommitted the Following Errors During 20x1,its First Year of Operations

Question 52

Multiple Choice

GXC Inc.committed the following errors during 20x1,its first year of operations: Recorded $800 of interest expense as a debit to prepaid expense and a credit to cash.
GXC recorded $2,000 of unearned revenue as a debit to revenue receivable and a credit to revenues.
No adjusting entries were made related to these transaction entries.
The effect of these errors is as follows: 20x1: GXC Inc.committed the following errors during 20x1,its first year of operations: Recorded $800 of interest expense as a debit to prepaid expense and a credit to cash. GXC recorded $2,000 of unearned revenue as a debit to revenue receivable and a credit to revenues. No adjusting entries were made related to these transaction entries. The effect of these errors is as follows: 20x1: A) Choice 1 B) Choice 2 C) Choice 3 D) Choice 4


A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4

Correct Answer:

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