Question 1

The unearned rent account has a balance of $72,000.If $18,000 of the $72,000 is unearned at the end of the accounting period,the amount of the adjusting entry is

Accepted Answer

A) $18,000 
B) $90,000 
C) $54,000 
D) $36,000 
A) $18,000 
B) $90,000 
C) $54,000 
D) $36,000

Question 2

Which of the accounts below would most likely appear on an adjusted trial balance but probably would not appear on the trial balance?

Accepted Answer

A) Fees Earned 
B) Accounts Receivable 
C) Unearned Fees 
D) Depreciation Expense 
A) Fees Earned 
B) Accounts Receivable 
C) Unearned Fees 
D) Depreciation Expense

Question 3

Gizmo Inc.purchased a one-year insurance policy on October 1 for $1,800.The adjusting entry on December 31 would be

Accepted Answer

$1,800/12 = $150 per month × 3 months =

Question 4

How will the following adjusting journal entry affect the accounting equation?

Accepted Answer

A) increase assets,increase revenues 
B) increase liabilities,increase revenues 
C) decrease liabilities,increase revenues 
D) decrease liabilities,decrease revenues 
A) increase assets,increase revenues 
B) increase liabilities,increase revenues 
C) decrease liabilities,increase revenues 
D) decrease liabilities,decrease revenues

Question 5

Fees payable would appear on the balance sheet as an

Accepted Answer

A) asset 
B) liability 
C) fixed asset 
D) unearned revenue 
A) asset 
B) liability 
C) fixed asset 
D) unearned revenue

Question 6

Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned.

Accepted Answer

A) True 
 B)False

Question 7

At the end of the current year,$3,700 fees have been earned but have not been billed to clients.Journalize the adjusting entry to record the accrued fees.

Accepted Answer

None

Question 8

Under the accrual basis,some accounts in the ledger require updating at the end of the period.Discuss the three main reasons for this updating and give an example of each.

Accepted Answer

1.  Some expenses are not recorded daily

Question 9

The unexpired insurance at the end of the fiscal period represents

Accepted Answer

A) an accrued asset 
B) an accrued liability 
C) an accrued expense 
D) a deferred expense 
A) an accrued asset 
B) an accrued liability 
C) an accrued expense 
D) a deferred expense

Question 10

A fixed asset's market value is reflected on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

The type of account and normal balance of Unearned Consulting Fees is

Accepted Answer

A) revenue,credit 
B) expense,debit 
C) liability,credit 
D) liability,debit 
A) revenue,credit 
B) expense,debit 
C) liability,credit 
D) liability,debit

Question 12

Salaries of $6,400 are paid for a five-day week on Friday.Prepare the adjusting journal entry that is required if the month ends on Thursday.

Accepted Answer

None

Question 13

Bloom's Company pays biweekly salaries of $40,000 every other Friday for a ten-day period ending on that day.The last payday of December is Friday, December 27.Assuming the next pay period begins on Monday,December 30,journalize the adjusting entry necessary at the end of the fiscal period December 31.

Accepted Answer

$40,000/10 days = $4,000 per day × 2 day

Question 14

A company receives $6,500 for two season tickets sold on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is a debit to Cash,$2,500,and a credit to Ticket Revenue,$2,500.

Accepted Answer

A) True 
 B)False

Question 15

On January 2,Dog Mart prepaid $30,000 rent for the year and recorded the prepayment in an asset account.Prepare the January 31 adjusting entry for rent expense.

Accepted Answer

The answer of On January 2,Dog Mart prepaid $30,000 rent...

Question 16

Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded.

Accepted Answer

A) True 
 B)False

Question 17

The balance in the prepaid rent account before adjustment at the end of the year is $32,000,which represents four months' rent paid on December 1.The adjusting entry required on December 31 is

Accepted Answer

A) debit Rent Expense,$8,000; credit Prepaid Rent,$8,000 
B) debit Prepaid Rent,$24,000; credit Rent Expense,$8,000 
C) debit Rent Expense,$24,000; credit Prepaid Rent,$8,000 
D) debit Prepaid Rent,$8,000; credit Rent Expense,$8,000 
A) debit Rent Expense,$8,000; credit Prepaid Rent,$8,000 
B) debit Prepaid Rent,$24,000; credit Rent Expense,$8,000 
C) debit Rent Expense,$24,000; credit Prepaid Rent,$8,000 
D) debit Prepaid Rent,$8,000; credit Rent Expense,$8,000

Question 18

Vertical analysis is useful for analyzing financial statement changes over time.

Accepted Answer

A) True 
 B)False

Question 19

On January 2,Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription.The January issue was mailed on January 15.Prepare the necessary entries for the month of January.

Accepted Answer

@#IMG-DLM&

The second entry can be made

Question 20

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

Accepted Answer

A) True 
 B)False

The unearned rent account has a balance of $72,000.If $18,000 of the $72,000 is unearned at the end of the accounting period,the amount of the adjusting entry is

Which of the accounts below would most likely appear on an adjusted trial balance but probably would not appear on the trial balance?

Gizmo Inc.purchased a one-year insurance policy on October 1 for $1,800.The adjusting entry on December 31 would be

How will the following adjusting journal entry affect the accounting equation?

Fees payable would appear on the balance sheet as an

Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned.

At the end of the current year,$3,700 fees have been earned but have not been billed to clients.Journalize the adjusting entry to record the accrued fees.

Under the accrual basis,some accounts in the ledger require updating at the end of the period.Discuss the three main reasons for this updating and give an example of each.

The unexpired insurance at the end of the fiscal period represents

A fixed asset's market value is reflected on the balance sheet.

The type of account and normal balance of Unearned Consulting Fees is

Salaries of $6,400 are paid for a five-day week on Friday.Prepare the adjusting journal entry that is required if the month ends on Thursday.

A company receives $6,500 for two season tickets sold on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is a debit to Cash,$2,500,and a credit to Ticket Revenue,$2,500.

On January 2,Dog Mart prepaid $30,000 rent for the year and recorded the prepayment in an asset account.Prepare the January 31 adjusting entry for rent expense.

Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded.

The balance in the prepaid rent account before adjustment at the end of the year is $32,000,which represents four months' rent paid on December 1.The adjusting entry required on December 31 is

Vertical analysis is useful for analyzing financial statement changes over time.

On January 2,Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription.The January issue was mailed on January 15.Prepare the necessary entries for the month of January.

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 3: The Adjusting Process

The unearned rent account has a balance of $72,000.If $18,000 of the $72,000 is unearned at the end of the accounting period,the amount of the adjusting entry is

Which of the accounts below would most likely appear on an adjusted trial balance but probably would not appear on the trial balance?

Gizmo Inc.purchased a one-year insurance policy on October 1 for $1,800.The adjusting entry on December 31 would be

How will the following adjusting journal entry affect the accounting equation?

Fees payable would appear on the balance sheet as an

Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned.

At the end of the current year,$3,700 fees have been earned but have not been billed to clients.Journalize the adjusting entry to record the accrued fees.

Under the accrual basis,some accounts in the ledger require updating at the end of the period.Discuss the three main reasons for this updating and give an example of each.

The unexpired insurance at the end of the fiscal period represents

A fixed asset's market value is reflected on the balance sheet.

The type of account and normal balance of Unearned Consulting Fees is

Salaries of $6,400 are paid for a five-day week on Friday.Prepare the adjusting journal entry that is required if the month ends on Thursday.

A company receives $6,500 for two season tickets sold on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is a debit to Cash,$2,500,and a credit to Ticket Revenue,$2,500.

On January 2,Dog Mart prepaid $30,000 rent for the year and recorded the prepayment in an asset account.Prepare the January 31 adjusting entry for rent expense.

Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded.

The balance in the prepaid rent account before adjustment at the end of the year is $32,000,which represents four months' rent paid on December 1.The adjusting entry required on December 31 is

Vertical analysis is useful for analyzing financial statement changes over time.

On January 2,Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription.The January issue was mailed on January 15.Prepare the necessary entries for the month of January.

Depreciation Expense is reported on the balance sheet as an addition to the related asset.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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