Exam 3: Adjusting and Closing Entries

A plot of land with a cost of $15,000, a salvage value of $3,000, and expected life of 20 years was purchased on September 1. What will be the depreciation expense recorded on December 31?

The total dollars in an accumulated depreciation account are:

The majority of businesses normally end their fiscal year on:

Classify the following items as prepaid expenses (PE), unearned revenue (UR), accrued expenses (AE), or accrued revenue (AR).

The unadjusted trial balance lists supplies with a $678 balance. After taking an inventory of supplies, it was found that $390 were on hand. The adjustment for supplies expense is a __________.

Preparing the post-closing trial balance is the __________ step in the accounting cycle.

The post-closing trial balance is a listing of the general ledger accounts that have balances at the end of the accounting period.

The unadjusted trial balance for supplies shows a $434 balance and a $132 adjustment. The adjusted trial balance for supplies would be a __________.

__________ entries transfer net income or net loss and dividends to the retained earnings account.

Rick Company bought a 2-year insurance policy on August 1 for $150 per month. Prepare the adjusting entry on December 31.

Which of the following accounts would be adjusted?

Given the following information, compute the retained earnings balance for Ruby's Hair Service for the month of January, 2012.

Given the following information, prepare a statement of retained earnings for Kara's Calendar Company for the month of February, 2012.

Accounts receivable would be an example of a(n) __________.

Unearned ticket revenue must be adjusted to show how much of the deferred revenue has been earned during the period.

Which of the following accounts appear on the post-closing trial balance?

Net income or net loss can be determined by the adjusted trial balance figures.

The statement of retained earnings that is prepared from the adjusted trial balance begins with the __________.

Supplies on hand were $900 at the start of the year. At the end of the year, it was determined that $350 of supplies had been used. What is the adjusting entry for supplies?

The adjusted trial balance for supplies was $333. The unadjusted trial balance for supplies was $509. The amount of supplies expense would be a __________.