Exam 3: Adjusting the Accounts

At March 1, 2011, Jupiter Corp.had supplies on hand of $500.During the month, Jupiter purchased supplies of $1,200 and used supplies of $1,500.The March 31 adjusting journal entry should include a

The cash basis of accounting is not in accordance with IFRS.

The time period assumption states that

An adjusted trial balance proves the ______________ of the total debit and credit balances after all ______________ entries have been made.

Which of the following statements related to the adjusted trial balance is incorrect?

A new accountant working for Unitas Company records $800 Depreciation Expense on store equipment as follows: The effect of this entry is to

Accounts often need to be adjusted because

Wave Inn is a resort located in Canada.During December 2011 Wave Inn collects $120,000 cash related to a conference booked by the Spin Jammers.The conference is scheduled for February 12 and 13, 2012.Which of the following is true regarding how this transaction is reported on the December 31, 2011 statement of financial position?

Adjusting entries are required

A company spends $10 million dollars for an office building.Over what period should the cost be written off?

Bee-In-The-Bonnet Company purchased office supplies costing $8,000 and debited Office Supplies for the full amount.At the end of the accounting period, a physical count of office supplies revealed $3,200 still on hand.The appropriate adjusting journal entry to be made at the end of the period would be

An expense is recorded under the cash basis only when

The balance in the Prepaid Rent account before adjustment at the end of the year is ¥12,000, which represents three months' rent paid on December 1.The adjusting entry required on December 31 is to

Adjusting entries are

Hercules Company purchased a computer for $3,600 on December 1.It is estimated that annual depreciation on the computer will be $720.If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

The difference between the cost of a depreciable asset and its related accumulated depreciation is referred to as the

The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000.The amount to be used for the appropriate adjusting entry is

In a service company, revenue is earned when the service is ______________.

Southwestern City College sold season tickets for the 2011 football season for $180,000.A total of 8 games will be played during September, October and November.In September, three games were played.The adjusting journal entry at September 30

The accounts in the adjusted trial balance contain all the data the company needs to prepare its statement of financial position.