Exam 3: The Adjusting Process

On April 1,Balsa Company purchased $800 of office supplies.At the end of April,they took a count of the remaining supplies and found that there were $150 of supplies left.Please provide the adjusting entry needed at the end of April.

The beginning balance in the Supplies account was $3,000.Purchases of supplies during the year were $25,000.The business makes adjusting entries for supplies once a year.A count of supplies at year-end revealed that the ending balance in the Supplies account should be $1,500.What is the amount of the adjusting entry? A) $1,500 B) $25,000 C) $26,500 D) $3,000

Robert Rogers,CPA owns a computer used by the business.The matching principle would require that which of the following accounts appear on the balance sheet for the year ended December 31?

A business pays its employees' monthly salaries of $20,000,half on the 15^th day of each month,and half on the first day of the following month. -It is now October 31,and the business must make an adjusting entry to accrue salaries for the second half of October.Please provide that adjusting entry.

If an adjusting entry includes a debit to Rent expense,that would indicate that the payment of rent had been previously recorded as a(n)________ entry.

Which of the following statements BEST mirrors the matching principle?

Hank's Tax Planning Service bought computer equipment for $19,200 on January 1,2012.It has an estimated useful life of 4 years.Hank records depreciation monthly.As of September 30,2012,Hank has recorded total depreciation expense for this equipment of: A) $2,400. B) $3,600. C) $400. D) $14,400.

Under cash-basis accounting,an expense is recorded ONLY when cash is paid out.

Adjusting entries NEVER involve:

The accountant for Barnes Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following is TRUE?

The accountant for Wilson Consulting Company failed to make an adjusting entry to record $3,000 of unearned service revenue that has now been earned.Which of the following is TRUE?

Under accrual basis accounting,revenue is recorded ONLY when cash is received.

The accountant for Jones Auto Repair Company failed to make an adjusting entry to record $5,000 of unpaid salaries for the last 2 weeks of the year.Which of the following is TRUE?

Which of the following entries would be made as the result of the revenue principle?

Robert Rogers,CPA owns a computer used for the company's business.The matching principle would require that which of the following accounts appear on the income statement for the year ended December 31?

In accounting,the matching principle means to match which of the following?

Hank's Tax Planning Service bought communications equipment for $7,200 on January 1,2012.It has an estimated useful life of 5 years.Hank records depreciation monthly. -As of June 30,2012,the balance in the Accumulated depreciation account for this equipment is: A) $1,440. B) $600. C) $120. D) $720.

Century Security Services purchased new communications equipment for $30,000 on October 1,2012.It will have a useful life of 5 years.Century records depreciation every month.Please provide the depreciation entry needed on October 31,2012.

Real Losers,a diet magazine,collected $360,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue. -The company uses the accrual method of accounting.By the end of December,how much Subscription revenue has been earned?

The accountant for Noble Jewelry Repair Services forgot to make an adjusting entry for Depreciation expense for the current year.Which of the following is one of the effects of this error?