Question 1

The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needsadjusting and deferred revenue has never been recorded.

Accepted Answer

A) True 
 B)False  False

Question 2

A contra asset account for Land will normally appear on the balance sheet.

Accepted Answer

A) True 
 B)False  False

Question 3

What effect will this adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | } 
\hline \text { Supplies Expense } & 760 & \
\hline \text { Supplies } & & 760 \
\hline
\end{array}$$

Accepted Answer

A)  increase income 
B)  decrease net income 
C)  decrease expenses 
D)  increase assets 
A)  increase income 
B)  decrease net income 
C)  decrease expenses 
D)  increase assets B

Question 4

Gizmo Company purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be:​

Accepted Answer

$1,800/12

Question 5

The financial statements are prepared from the unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 6

Match the type of account (a through e) with the business transactions that follow.
-Retainer fee received from a client for future legal representation.

Accepted Answer

A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices 
A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices

Question 7

Depreciation on an office building is $2,800. The adjusting entry on December 31 would be: $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Date } & \text { Description } & \text { Post. Ref. } & \text { Debit } & \text { Credit } \
\hline & & & & \
\hline & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of Depreciation on an office building is $2,800....

Question 8

The balance in the office supplies account on January 1 was $7,000, supplies purchased during January were $3,000, and the supplies on hand on January 31 were $2,000. The amount to be used for the appropriate adjusting entry is

Accepted Answer

A)  $4,300 
B)  $12,000 
C)  $5,000 
D)  $8,000 
A)  $4,300 
B)  $12,000 
C)  $5,000 
D)  $8,000

Question 9

On December 15, Great Designs Company hired an independent contractor for a project. The contractor completed the project on December 29 and submitted an invoice for $2,425 which was due on January 15. The amount was duly paid on January 15.​
(a) Prepare the journal entry or entries necessary to record these transactions.
(b) Explain why you prepared this/these journal entries.

Accepted Answer

The answer of On December 15, Great Designs Company hired...

Question 10

The systematic allocation of land's cost to expense is called depreciation.

Accepted Answer

A) True 
 B)False

Question 11

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

Accepted Answer

A) True 
 B)False

Question 12

A company receives $6,500 for two season tickets sold on September 1. If $2,500 is earned by December 31, the adjusting entry made at that time is a debit to Cash of $2,500, and a credit to Ticket Revenue of $2,500.

Accepted Answer

A) True 
 B)False

Question 13

What effect will the following adjusting journal entry have on the accounting records? $$\begin{array} { | c | r | r | } 
\hline \text { Depreciation Expense } & 2,150 & \
\hline \text { Accumulated Depreciation } & & 2,150 \
\hline
\end{array}$$

Accepted Answer

A)  increase net income 
B)  increase revenues 
C)  decrease expenses 
D)  decrease net book value 
A)  increase net income 
B)  increase revenues 
C)  decrease expenses 
D)  decrease net book value

Question 14

DogMart Company records depreciation for equipment. Depreciation for the period ending December 31 is $1,400 for office equipment and $2,650 for production equipment. Prepare the two entries to record the depreciation.

Accepted Answer

The answer of DogMart Company records depreciation for equipment. Depreciation...

Question 15

On November 1, clients of Great Designs Company prepaid $4,250 for services to be provided in the future at a rate of $85 per hour.​
(a) Journalize the receipt of cash.
(b) As of November 30, Great Designs shows that 15 hours of services have been provided on this agreement. Prepare the necessary journal entry.
(c) Determine the total unearned fees in hours and dollars at November 30.

Accepted Answer

The answer of On November 1, clients of Great Designs...

Question 16

Record journal entries for the following transactions.​​
(a) On December 1, $18,000 was received for a service contract to be performed from December 1 through April 30.​
(b) Assuming the work is performed evenly throughout the contract period, prepare the adjusting journal entry on December 31.

Accepted Answer

The answer of Record journal entries for the following transactions.​​
(a)...

Question 17

Gracie Company made a prepaid rent payment of $2,800 on January 1. The company's monthly rent is $700. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is

Accepted Answer

A)  $2,100 
B)  $700 
C)  $2,800 
D)  $1,400 
A)  $2,100 
B)  $700 
C)  $2,800 
D)  $1,400

Question 18

Match the type of account (a through e) with the business transactions that follow.
-Paid for a six-month magazine subscription.

Accepted Answer

A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices 
A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices

Question 19

The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is

Accepted Answer

A)  $18,000 
B)  $90,000 
C)  $54,000 
D)  $36,000 
A)  $18,000 
B)  $90,000 
C)  $54,000 
D)  $36,000

Question 20

The account type and normal balance of Unearned Revenue would be

Accepted Answer

A)  revenue, credit 
B)  expense, debit 
C)  liability, credit 
D)  asset, debit 
A)  revenue, credit 
B)  expense, debit 
C)  liability, credit 
D)  asset, debit

Exam 3: The Adjusting Process

The difference between deferred revenue and accrued revenue is that accrued revenue has been recorded and needsadjusting and deferred revenue has never been recorded.

A contra asset account for Land will normally appear on the balance sheet.

What effect will this adjusting journal entry have on the accounting records? Supplies Expense 760 Supplies 760

Gizmo Company purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be:​

The financial statements are prepared from the unadjusted trial balance.

Match the type of account (a through e) with the business transactions that follow. -Retainer fee received from a client for future legal representation.

Depreciation on an office building is $2,800. The adjusting entry on December 31 would be: Date Description Post. Ref. Debit Credit

The balance in the office supplies account on January 1 was $7,000, supplies purchased during January were $3,000, and the supplies on hand on January 31 were $2,000. The amount to be used for the appropriate adjusting entry is

The systematic allocation of land's cost to expense is called depreciation.

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

A company receives $6,500 for two season tickets sold on September 1. If $2,500 is earned by December 31, the adjusting entry made at that time is a debit to Cash of $2,500, and a credit to Ticket Revenue of $2,500.

What effect will the following adjusting journal entry have on the accounting records? Depreciation Expense 2,150 Accumulated Depreciation 2,150

DogMart Company records depreciation for equipment. Depreciation for the period ending December 31 is $1,400 for office equipment and $2,650 for production equipment. Prepare the two entries to record the depreciation.

Gracie Company made a prepaid rent payment of $2,800 on January 1. The company's monthly rent is $700. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is

Match the type of account (a through e) with the business transactions that follow. -Paid for a six-month magazine subscription.

The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of the accounting period, the amount of the adjusting entry is

The account type and normal balance of Unearned Revenue would be

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Gizmo Company purchased a one-year insurance policy on October 1 for $1,800. The adjusting entry on December 31 would be: