Exam 4: Accrual Accounting Concepts

A company shows a balance in Salaries and Wages Payable of $50,000 at the end of the month.The next payroll amounting to $75,000 is to be paid in the following month.What will be the journal entry to record the payment of salaries?

The purpose of the post-closing trial balance is to:

Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause:

The Harris Company purchased equipment for $15,000 on December 1.It is estimated that annual depreciation on the computer will be $3,000.If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting.

The trial balance for Greenway Corporation appears as follows: If, on December 31, 2022, supplies on hand were $40, the adjusting entry would contain a:

Amos Real Estate signed a four-month note payable in the amount of $20,000 on September 1.The note requires interest at an annual rate of 9%.The amount of interest to be accrued at the end of September is:

The following information is from the Income Statement of the Campus Laundry Service: The entry to close Income Summary includes a:

Which of the following accounts will reflect the account's beginning balance on the adjusted trial balance?

Which statement is incorrect concerning the adjusted trial balance?

Jill Clown earned a salary of $500 for the last week of October.She will be paid on November 1.The adjusting entry for Jill's employer October 31 is:

Which of the following is not generally an accounting time period?

Brokaw Industries signs a $40,000, 9%, 6-month note payable on September 1, 2021.How much interest expense will Brokaw report in its 2022 financial statements?

The preparation of adjusting entries is:

Which of the following is an example of a deferral adjusting entry?

Hoosher Enterprises purchased an 18-month insurance policy on May 31, 2022 for $10,800.The December 31, 2022 balance sheet would report Prepaid Insurance of:

A contra asset account is subtracted from a related account in the balance sheet.

Which account will have a zero balance after closing entries have been journalized and posted?

The closing entry process consists of closing:

Fleet Services Company purchased equipment for $12,000 on January 1, 2022.The company expects to use the equipment for 5 years.It has no salvage value.What balance would be reported on the December 31, 2022 balance sheet for Accumulated Depreciation?