Exam 3: Adjusting Accounts for Financial Statements

Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, and the company paid $18,000 cash in dividends to the owner (sole shareholder). The retained earnings account before closing had a balance of $297,000. The Net Income for the year is:

(Multiple Choice)

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Question 181

Palmer Company, Inc. is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, had prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

(Multiple Choice)

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Question 182

On January 1, Imlay Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an estimated salvage value of $5,000. Imlay uses the straight-line depreciation method to allocate costs. The adjusting entry needed on December 31 of the first year is:

(Multiple Choice)

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Question 183

Identify the primary differences between accrual accounting and cash basis accounting.

(Essay)

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Question 184

On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year?

(Multiple Choice)

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Question 185

The adjusting entry to record an accrued revenue is:

(Multiple Choice)

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Question 186

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?

(Multiple Choice)

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Question 187

A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?

(Multiple Choice)

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Question 188

An adjusting entry often includes an entry to Cash.

(True/False)

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Question 189

basis accounting means that revenues are recognized when cash is received and that expenses are recorded when cash is paid. ___ basis accounting means that the financial effects of revenues and expenses are recorded when earned or incurred.

(Short Answer)

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Question 190

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

(Multiple Choice)

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Question 191

On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?

(Multiple Choice)

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Question 192

Showing 181 - 192 of 192

Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, and the company paid $18,000 cash in dividends to the owner (sole shareholder). The retained earnings account before closing had a balance of $297,000. The Net Income for the year is:

Palmer Company, Inc. is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, had prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

On January 1, Imlay Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an estimated salvage value of $5,000. Imlay uses the straight-line depreciation method to allocate costs. The adjusting entry needed on December 31 of the first year is:

Identify the primary differences between accrual accounting and cash basis accounting.

The adjusting entry to record an accrued revenue is:

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?

A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?

An adjusting entry often includes an entry to Cash.

basis accounting means that revenues are recognized when cash is received and that expenses are recorded when cash is paid. ___ basis accounting means that the financial effects of revenues and expenses are recorded when earned or incurred.

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?

Accounting in Business

Accounting for Business Transactions

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Filters

Exam 3: Adjusting Accounts for Financial Statements

Tara Westmont, the stockholder of Tiptoe Shoes, Inc., had annual revenues of $185,000, expenses of $103,700, and the company paid $18,000 cash in dividends to the owner (sole shareholder). The retained earnings account before closing had a balance of $297,000. The Net Income for the year is:

Palmer Company, Inc. is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, had prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

On January 1, Imlay Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an estimated salvage value of $5,000. Imlay uses the straight-line depreciation method to allocate costs. The adjusting entry needed on December 31 of the first year is:

Identify the primary differences between accrual accounting and cash basis accounting.

The adjusting entry to record an accrued revenue is:

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?

A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?

An adjusting entry often includes an entry to Cash.

__________ basis accounting means that revenues are recognized when cash is received and that expenses are recorded when cash is paid. _____________ basis accounting means that the financial effects of revenues and expenses are recorded when earned or incurred.

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?

Accounting in Business

Accounting for Business Transactions

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Filters

basis accounting means that revenues are recognized when cash is received and that expenses are recorded when cash is paid. ___ basis accounting means that the financial effects of revenues and expenses are recorded when earned or incurred.