Question 1

The entry to adjust for the cost of supplies used during the accounting period is

Accepted Answer

A) debit Supplies Expense; credit Supplies 
B) debit Stockholders' Equity; credit Supplies 
C) debit Accounts Payable; credit Supplies 
D) debit Supplies; credit Stockholders' Equity 
A) debit Supplies Expense; credit Supplies 
B) debit Stockholders' Equity; credit Supplies 
C) debit Accounts Payable; credit Supplies 
D) debit Supplies; credit Stockholders' Equity A

Question 2

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 3

Adjusting entries affect at least one

Accepted Answer

A) income statement account and one balance sheet account 
B) revenue and the dividends account 
C) asset and one stockholders' equity account 
D) revenue and one stockholders' equity account 
A) income statement account and one balance sheet account 
B) revenue and the dividends account 
C) asset and one stockholders' equity account 
D) revenue and one stockholders' equity account A

Question 4

Prepaid expenses are eventually expected to become

Accepted Answer

A) expenses when their future economic value expires or is used up 
B) revenues when services are performed 
C) expenses in the period when they are paid 
D) revenues when the liability is no longer owed 
A) expenses when their future economic value expires or is used up 
B) revenues when services are performed 
C) expenses in the period when they are paid 
D) revenues when the liability is no longer owed

Question 5

The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are prepared.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

​Which of the following accounts would likely be included in a deferral adjusting entry?

Accepted Answer

A) ​Interest Revenue 
B) ​Unearned Revenue 
C) ​Salaries Payable 
D) ​Accounts Receivable 
A) ​Interest Revenue 
B) ​Unearned Revenue 
C) ​Salaries Payable 
D) ​Accounts Receivable

Question 9

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Accepted Answer

A) debit Salaries Payable; credit Cash 
B) debit Cash; credit Salaries Payable 
C) debit Salaries Payable; credit Salaries Expense 
D) debit Salaries Expense; credit Salaries Payable 
A) debit Salaries Payable; credit Cash 
B) debit Cash; credit Salaries Payable 
C) debit Salaries Payable; credit Salaries Expense 
D) debit Salaries Expense; credit Salaries Payable

Question 10

Ski Master Company pays weekly salaries of $18,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Wednesday.

Accepted Answer

The answer of Ski Master Company pays weekly salaries of...

Question 11

On December 31, the balance in the office supplies account is $1,385. A physical count shows $435 worth of supplies on hand. Prepare the adjusting entry for supplies.

Accepted Answer

$1,385 − $435 = $950

Question 12

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Accepted Answer

A) depreciation 
B) deferral 
C) accrual 
D) inventory 
A) depreciation 
B) deferral 
C) accrual 
D) inventory

Question 13

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 14

Match the type of account (a - e) with the business transactions that follow.
-Electric bill to be paid next month.
A)Prepaid expense
B)Accrued expense
C)Unearned revenue
D)Accrued revenue
E)None of these

Accepted Answer

The answer of Match the type of account (a -...

Question 15

The updating of accounts when financial statements are prepared is called the adjusting process.

Accepted Answer

A) True 
 B)False

Question 16

Prepaid expenses have

Accepted Answer

A) not yet been recorded as expenses but have been paid 
B) been recorded as expenses and paid 
C) been incurred and paid 
D) not yet been recorded as expenses or paid 
A) not yet been recorded as expenses but have been paid 
B) been recorded as expenses and paid 
C) been incurred and paid 
D) not yet been recorded as expenses or paid

Question 17

By ignoring and not posting the adjusting journal entries to the appropriate accounts, net income will always be overstated.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 a stockholders' 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 a stockholders' equity account 
D) increases the balance of an expense account

Question 20

The financial statements are prepared from the unadjusted trial balance.

Accepted Answer

A) True 
 B)False

Exam 3: The Adjusting Process

The entry to adjust for the cost of supplies used during the accounting period is

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.

Adjusting entries affect at least one

Prepaid expenses are eventually expected to become

The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are prepared.

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.

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

​Which of the following accounts would likely be included in a deferral adjusting entry?

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Ski Master Company pays weekly salaries of $18,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Wednesday.

On December 31, the balance in the office supplies account is $1,385. A physical count shows $435 worth of supplies on hand. Prepare the adjusting entry for supplies.

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

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

Match the type of account (a - e) with the business transactions that follow. -Electric bill to be paid next month. A)Prepaid expense B)Accrued expense C)Unearned revenue D)Accrued revenue E)None of these

The updating of accounts when financial statements are prepared is called the adjusting process.

Prepaid expenses have

By ignoring and not posting the adjusting journal entries to the appropriate accounts, net income will always be overstated.

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?

The financial statements are prepared from the unadjusted trial balance.

Introduction to Accounting and Business

Analyzing Transactions

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

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.

Which of the following accounts would likely be included in a deferral adjusting entry?