An adjusting entry was made on year-end December 31 to accrue salary expense of $1,200. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $3,000 payment of salaries in January of the following year? A) $\begin{array}{|l|r|r|} \hline \text { Salaries Payable } & 1,200 & \\ \hline \text { Salaries Expense } & & 1,200 \\ \hline \end{array}$ B) $\begin{array}{|l|r|r|} \hline \text { Salaries Payable } & 1,200 & \\ \hline \text { Cash } & & 1,200 \\ \hline \end{array}$ C) $\begin{array}{|l|r|r|} \hline \text { Salaries Payable } & 1,200 & \\ \hline \text { Salaries Expense } & 1,800 & \\ \hline \text { Cash } & & 3,000 \\ \hline \end{array}$ D) $\begin{array}{|l|r|r|} \hline \text { Salaries Expense } & 3,000 & \\ \hline \text { Cash } & & 3,000 \\ \hline \end{array}$ \[\begin{array}{l} \text { E) }\\ \begin{array} { | l | r | r | } \hline \text { Salaries Payable } & 3,000 & \\ \hline \text { Cash } & & 3,000 \\ \hline \end{array} \end{array}\]

The answer of An adjusting entry was made on year-end...

Exam 3: Adjusting Accounts and Preparing Financial Statements

On April 1, Santa Fe, Inc. paid Griffith Publishing Company $1,548 for 36-month subscriptions to several different magazines. Santa Fe debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What adjusting entry should be made by Santa Fe, Inc. for the adjustment on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustments had been made?

(Multiple Choice)

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Question 201

An adjusting entry was made on year-end December 31 to accrue salary expense of $1,200. Assuming the company does not prepare reversing entries, which of the following entries would be prepared to record the $3,000 payment of salaries in January of the following year? A) Salaries Payable 1,200 Salaries Expense 1,200 B) Salaries Payable 1,200 Cash 1,200 C) Salaries Payable 1,200 Salaries Expense 1,800 Cash 3,000 D) Salaries Expense 3,000 Cash 3,000 E) Salaries Payable 3,000 Cash 3,000

(Short Answer)

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Question 202

Identify the primary differences between accrual accounting and cash basis accounting.

(Essay)

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Question 203

On January 1, Eastern College received $1,200,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28?

(Multiple Choice)

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Question 204

A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?

(Multiple Choice)

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Question 205

The cash basis of accounting recognizes revenues when cash payments from customers are received.

(True/False)

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Question 206

The time period assumption assumes that an organization's activities may be divided into specific reporting time periods including all of the following except:

(Multiple Choice)

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Question 207

All of the following are true regarding prepaid expenses except:

(Multiple Choice)

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Question 208

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

(Multiple Choice)

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Question 209

An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded.

(True/False)

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Question 210

On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:

(Multiple Choice)

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Question 211

Describe the two alternate methods used to account for prepaid expenses.

(Essay)

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Question 212

Showing 201 - 212 of 212

Identify the primary differences between accrual accounting and cash basis accounting.

A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?

The cash basis of accounting recognizes revenues when cash payments from customers are received.

The time period assumption assumes that an organization's activities may be divided into specific reporting time periods including all of the following except:

All of the following are true regarding prepaid expenses except:

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded.

On December 31, Carmack Company received a $215 utility bill for December that it will not pay until January 15. The adjusting entry needed on December 31 to accrue this expense is:

Describe the two alternate methods used to account for prepaid expenses.

Accounting in Business

Analyzing and Recording Transactions

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

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