Exam 3: Adjusting and Closing Entries

If Crane company records revenue when cash is received, they are using the:

The adjusted balance for Prepaid Insurance is a $7,124 debit. Insurance Expense for the period was $1,336. What was the balance for Prepaid Insurance on the unadjusted trial balance?

Monet's Paint Co. had closing entries which included $7,300 of revenues, $3,000 of expenses, and $300 of dividends. The net change in retained earnings was $4,000.

The closing entries show a debit to Retained Earnings of $350, and a credit to Retained Earnings of $760. There was also a credit to Dividends Payable of $120. This company had a:

A 40-month insurance policy was purchased for $2,100 on May 1. How much insurance will be expensed on December 31?

A company started the year with no supplies. During this year they bought $230 worth of supplies on account and later paid $150 of this debt. If there were $20 supplies left at the end of this year, what was the supply expense for the period?

Prepaid expenses are also called:

Which of the following accounts does NOT go onto the Income Statement from the adjusted trial balance?

The entry to close the revenue accounts includes:

If a company forgets to make an adjusting entry relating to a deferred expense, which of the following would NOT be true?

The total revenues of $7,000, total expenses of $3,700 and dividends of $900 were recorded in the closing entries. The net change in Retained Earnings for the month was:

Wages that have been accrued need to be recorded so that the matching principle is reflected in Wages Expense.

Accounting for revenue on an accrual basis means that no entry of revenue is made until the cash is actually received.

The journal entry to record $2,750 of depreciation expense for the year would be to:

On the Income Statement, expenses are always listed in descending order from the largest to the smallest amount.