Question 1

What is the purpose of an adjusted trial balance? What type
(s) of error does it detect? What type
(s) of error does it not detect?

Accepted Answer

The purpose of an adjusted trial balance

Question 2

Jordon James started JJJ Consulting on January 1. The following are the account balances at the end of the first month of business, before adjusting entries were recorded:​   Adjustment data:Supplies on hand at the end of the month, $200Unbilled consulting revenue, $700Rent expense for the month, $1,000Depreciation on equipment, $90
(a) Prepare the required adjusting entries, adding accounts as needed.
(b) Prepare an adjusted trial balance for JJJ Consulting as of January 31.​​

Accepted Answer

The answer of Jordon James started JJJ Consulting on January...

Question 3

Listed below are accounts to use for transactions 
(a) through 
(j), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number (s) in the appropriate box.?   ?

Accepted Answer

The answer of Listed below are accounts to use for...

Question 4

List the four basic types of accounts that require adjusting entries and give an example of each.

Accepted Answer

1. Prepaid expenses; example: prepaid in

Question 5

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

Accepted Answer

A)  debit Unearned Gym Memberships; credit Gym Memberships Revenue 
B)  debit Gym Memberships Revenue; credit Unearned Gym Memberships 
C)  debit Unearned Gym Memberships; credit Prepaid Gym Memberships 
D)  debit Gym Memberships Expense; credit Unearned Gym Memberships 
A)  debit Unearned Gym Memberships; credit Gym Memberships Revenue 
B)  debit Gym Memberships Revenue; credit Unearned Gym Memberships 
C)  debit Unearned Gym Memberships; credit Prepaid Gym Memberships 
D)  debit Gym Memberships Expense; credit Unearned Gym Memberships

Question 6

If there is a balance in the prepaid rent account after adjusting entries are made, it represents a (n)

Accepted Answer

A)  deferral 
B)  accrual 
C)  revenue 
D)  liability 
A)  deferral 
B)  accrual 
C)  revenue 
D)  liability

Question 7

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

Accepted Answer

A) True 
 B)False

Question 8

How will the following adjusting journal entry affect the accounting equation? $$\begin{array} { | c | r | r | } 
\hline \text { Unearned Subscription Revenue } & 11,500 & \
\hline \text { Subscription Revenue } & & 11,500 \
\hline
\end{array}$$

Accepted Answer

A)  increase assets, increase revenues 
B)  increase liabilities, increase revenues 
C)  decrease liabilities, increase revenues 
D)  decrease liabilities, decrease revenues 
A)  increase assets, increase revenues 
B)  increase liabilities, increase revenues 
C)  decrease liabilities, increase revenues 
D)  decrease liabilities, decrease revenues

Question 9

Classify the following items as: 
(1) prepaid expense, 
(2) unearned revenue, 
(3) accrued expense, or 
(4) accrued revenue.​a) Fees received but not yet earnedb) Fees earned but not yet receivedc) Paid premium on a one-year insurance policyd) Property tax owed to be paid beginning of next year

Accepted Answer

a. 
(2) unearned rev

Question 10

Indicate whether the following error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.​The adjustment for accrued fees of $1,170 was journalized as a debit to Accounts Receivable for $1,170 and a credit to Fees Earned for $1,107.

Accepted Answer

The total will be un

Question 11

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

Accepted Answer

A) True 
 B)False

Question 12

Bloom's Company pays biweekly salaries of $40,000 every other Friday for a 10-day period ending on that day. The last payday of December is Friday, December 27. Assuming the next pay period begins on Monday, December 30, journalize the adjusting entry necessary at the end of the fiscal period 
(December 31). $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Date } & \text { Description } & \begin{array} { c } 
\text { Post. } \
\text { Ref. }
\end{array} & \text { Debit } & \text { Credit } \
\hline & & & & \
\hline & & & & \
\hline
\end{array}$$

Accepted Answer

$40,000/10 days = $4

Question 13

For each of the following, journalize the necessary adjusting entry:
(a)A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal period, assuming that the fiscal period ends 
(1) on Tuesday or 
(2) on Wednesday.
(b)The balance in the prepaid insurance account before adjustment at the end of the year is $18,000. Journalize the adjusting entry required under each of the following alternatives: 
(1) the amount of insurance expired during the year is $5,300 or 
(2) the amount of unexpired insurance applicable to a future period is $2,700.
(c)On July 1 of the current year, a business pays $54,000 to the city for license taxes for the coming fiscal year. The same business is also required to pay an annual property tax at the end of the year. The estimated amount of the current year's property tax allocated to July is $4,800. 
(1) Journalize the two adjusting entries required to bring the accounts affected by the taxes up to date as of July 31. 
(2) What is the amount of tax expense for July?
(d)The estimated depreciation on equipment for the year is $32,000.

Accepted Answer

The answer of For each of the following, journalize the...

Question 14

Accumulated Depreciation and Depreciation Expense are classified, respectively, as

Accepted Answer

A)  expense, contra asset 
B)  asset, contra liability 
C)  revenue, asset 
D)  contra asset, expense 
A)  expense, contra asset 
B)  asset, contra liability 
C)  revenue, asset 
D)  contra asset, expense

Question 15

The supplies account had a beginning balance of $1,750. Supplies purchased during the period totaled $3,500. At the end of the period before adjustment, $350 of supplies was on hand. Prepare the adjusting entry for supplies.

Accepted Answer

$1,750 + $3,500 − $3

Question 16

Accumulated depreciation accounts are liability accounts.

Accepted Answer

A) True 
 B)False

Question 17

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry?

Accepted Answer

A)  increases the balance of a contra asset account 
B)  increases the balance of an asset account 
C)  decreases the balance of an owner's equity account 
D)  increases the balance of an expense account 
A)  increases the balance of a contra asset account 
B)  increases the balance of an asset account 
C)  decreases the balance of an owner's equity account 
D)  increases the balance of an expense account

Question 18

If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a (n)

Accepted Answer

A)  deferral 
B)  accrual 
C)  dividend 
D)  revenue 
A)  deferral 
B)  accrual 
C)  dividend 
D)  revenue

Question 19

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called

Accepted Answer

A)  equipment allocation 
B)  depreciation 
C)  accumulation 
D)  matching 
A)  equipment allocation 
B)  depreciation 
C)  accumulation 
D)  matching

Question 20

Generally accepted accounting principles require the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Exam 3: The Adjusting Process

What is the purpose of an adjusted trial balance? What type (s) of error does it detect? What type (s) of error does it not detect?

Listed below are accounts to use for transactions (a) through (j), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number (s) in the appropriate box.? ?

List the four basic types of accounts that require adjusting entries and give an example of each.

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

If there is a balance in the prepaid rent account after adjusting entries are made, it represents a (n)

If the debit portion of an adjusting entry is to an asset account, then the credit portion must be to a liability account.

How will the following adjusting journal entry affect the accounting equation? Unearned Subscription Revenue 11,500 Subscription Revenue 11,500

Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue.​a) Fees received but not yet earnedb) Fees earned but not yet receivedc) Paid premium on a one-year insurance policyd) Property tax owed to be paid beginning of next year

Adjusting entries affect balance sheet accounts to the exclusion of income statement accounts.

Accumulated Depreciation and Depreciation Expense are classified, respectively, as

The supplies account had a beginning balance of $1,750. Supplies purchased during the period totaled $3,500. At the end of the period before adjustment, $350 of supplies was on hand. Prepare the adjusting entry for supplies.

Accumulated depreciation accounts are liability accounts.

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry?

If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a (n)

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called

Generally accepted accounting principles require the accrual basis of accounting.

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

Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue.a) Fees received but not yet earnedb) Fees earned but not yet receivedc) Paid premium on a one-year insurance policyd) Property tax owed to be paid beginning of next year