Exam 3: Adjusting the Accounts

Henry-K Company purchased a computer system for $5,400 on January 1, 2011.The company expects to use the computer system for 3 years.It has no residual value.Monthly depreciation expense on the asset is

Adjusting entries

Which of the following are in accordance with IFRS?

Monthly and quarterly time periods are called

Myron is a barber who does his own accounting for his shop. When he buys supplies he routinely debits Supplies Expense. Myron purchased $\$ 1,500$ of supplies in January and his inventory at the end of January shows $\$ 600$ of supplies remaining. What adjusting entry should Myron make on January 31?

If the adjusting entry for depreciation is not made,

Accrued revenues are amounts recorded and received but not yet earned.

The preparation of adjusting entries is

Employees at Julian Corporation are paid $10,000 cash every Friday for working Monday through Friday.The calendar year accounting period ends on Wednesday, December 31.How much salary expense should be recorded two days later on January 2?

Which of the following adjustments would require decreasing the liabilities reported on the statement of financial position?

Betty Carson, an accountant, has billed her clients for services performed.She subsequently receives payments from her clients.What entry will Betty make upon receipt of the payments?

Cara, Inc.purchased supplies costing $2,500 on January 1, 2011 and recorded the transaction by debiting an expense.At the end of the year $1,300 of the supplies are still on hand.If Cara, Inc.does not make the appropriate adjusting entry, what is the impact on its statement of financial position at December 31, 2011?

If an adjusting entry is not made for an accrued revenue,

On January 1, 2011, P.T.Scope Company purchased a computer system for $3,240.The company expects to use the system for 3 years.The asset has no salvage value.The book value of the system at December 31, 2012 is

A company must make adjusting entries every time it prepares an income statement and a statement of financial position.

Adjusting entries impact at least one income statement and at least one statement of financial position account.

A candy factory's employees work overtime to finish an order that is sold on February 28.The office sends a statement to the customer in early March and payment is received by mid-March.The overtime wages should be expensed in

For prepaid expense adjusting entries

Alternative adjusting entries do not apply to

An adjusting entry