Exam 3: The Adjusting Process

The table below represents Able Company's supplies account.Please supply the missing amount. Supplies, beginning balance 1,000 Supplies purchased during year 12,000 Supplies expense during the year ? Supplies, ending balance 3,000

Entries that record cash paid out before the expense is incurred are:

Below is the adjusted trial balance for Parsons Repair Service.Please prepare the balance sheet at December 31,2012. Accounts Debit Credit Cash \ 1,600 Accounts receivable 2,400 Prepaid rent 800 Supplies 200 Building 14,000 Accumulated depreciation \ 2,000 Accounts payable 4,200 Salary payable 1,000 Unearned revenue 800 D. Parsons, capital 6,000 D. Parsons, drawing 1,000 Service revenue 50,000 Salary expense 21,000 Rent expense 14,000 Depreciation expense 8,500 Supplies expense 500 Total \ 64,000 \ 64,000

Hank's Tax Planning Service has a beginning balance in the Supplies account of $800.During the current month,he purchased an additional $2,000 of supplies.At the end of the month,he had $250 of supplies left.The amount of supply expense to be recorded for the month is: A) $1,750. B) $2,000. C) $250. D) $2,550.

At January 1,Smith has a beginning balance in Unearned revenue of $1,000.During January,he earns $800 of that amount.He also collects $4,000 from a new customer for services to be rendered the following month.As of the end of January,the Unearned revenue account had a balance of $4,800.

Argyle Designs has a contract to design 20 new dresses for a customer,and will collect a total of $40,000 when the design services are complete.They start on June 1.As of June 30,Argyle has finished 4 of the 20 designs.They will make an adjusting entry at the end of June to accrue $10,000 of service revenue.

Which of the following would be considered an interim accounting period?

The entry to record depreciation includes a debit to which account?

Which of the following entries would be recorded if a company is using the cash-basis method of accounting?

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 15,and the business pays out $10,000 in salaries.Please provide the journal entry for that payment.

Prepaid insurance is an asset account.

In accounting,depreciation is the:

Which of the following accounts would NOT be included in the adjusting entries made at the end of an accounting period?

Which of the following is the time-period concept?

Contra asset accounts like Accumulated depreciation have normal debit balances.

In the case of a prepaid expense,the adjusting entry required at the end of a period consists of a debit to Prepaid expense.

Pattie's Event Planning Service records prepaid expenses as expenses when cash is paid out,and records unearned revenues as revenues when cash is collected.She then makes adjusting entries as needed to bring her books up to the full accrual basis once a year at the end of the year.This year on October 1,she paid out $3,600 for insurance for a one-year period.At the end of the year,she will make an adjustment entry that debits Insurance expense for $900.

Entries that record an expense before the cash is paid are:

Employees of Robert Rogers,CPA worked during the last two weeks of December.They received their paychecks on January 2.The matching principle would require that which of the following accounts appear on the balance sheet for December 31?

Duncan Services initially records prepaid expenses as expenses,and unearned revenues as revenues.Then at the end of the year,they make the necessary adjustments to the accrual basis.On July 1,Duncan paid rent for office space in the amount of $12,000 for the period July 1 through June 30 of the following year.Please provide the adjusting entry that would be needed at year-end.