Question 1

Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 2

On January 1,Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500,and an estimated useful life of five years.Using the straight-line method,what is the amount that should be recorded as depreciation on December 31?

Accepted Answer

A) $27,000 
B) $24,900 
C) $29,100 
D) $135,000 
E) $10,500 
A) $27,000 
B) $24,900 
C) $29,100 
D) $135,000 
E) $10,500

Question 3

A company had service revenue of $250,000,rent expense of $10,000,utility expense of $3,500,salary expense of $18,500,depreciation expense of $9,000,advertising expense of $4,500,dividends in the amount of $18,000,and a beginning balance in retained earnings of $17,900.What is the balance in the income summary account before it is closed for the period?

Accepted Answer

A) $250,000 
B) $45,500 
C) $204,500 
D) $222,400 
E) $232,100 
A) $250,000 
B) $45,500 
C) $204,500 
D) $222,400 
E) $232,100

Question 4

Depreciation expense is an example of an accrued expense.

Accepted Answer

A) True 
 B)False

Question 5

Use the following partial work sheet from Matthews Lanes to prepare its income statement,statement of changes in retained earnings,and a balance sheet.

Accepted Answer

@#IMG-DLM&_TB6947_00_TB6947_00

Question 6

A contra account is an account linked with another account; it is added to that account to show the proper net amount for that particular item.

Accepted Answer

A) True 
 B)False

Question 7

Classified balance sheets commonly include the following categories.
Indicate the typical classification of each item listed below by placing the correct balance sheet category in the blank space next to the item.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 8

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 9

What is the total amount of current assets based on the following information,assuming all accounts have a normal balance?

Accepted Answer

A) $74,800 
B) $37,647 
C) $60,265 
D) $23,112 
E) $60,953 
A) $74,800 
B) $37,647 
C) $60,265 
D) $23,112 
E) $60,953

Question 10

Which of the following does not require an adjusting entry at year-end?

Accepted Answer

A) Accrued interest on notes payable. 
B) Supplies used during the period. 
C) Cash investments by stockholders. 
D) Accrued wages. 
E) Expired portion of prepaid insurance. 
A) Accrued interest on notes payable. 
B) Supplies used during the period. 
C) Cash investments by stockholders. 
D) Accrued wages. 
E) Expired portion of prepaid insurance.

Question 11

Earned but uncollected revenues that are recorded during the adjusting process with a credit to a revenue account and a debit to an expense account are referred to as accrued expenses.

Accepted Answer

A) True 
 B)False

Question 12

The calendar year-end adjusted trial balance for Acosta Co.follows:
   Required:
a.Prepare a classified year-end balance sheet.(Note: A $7,000 installment on the long-term note payable is due within one year.)
b.Calculate the current ratio.

Accepted Answer

a. @#IMG-DLM&_TB6947_00_TB6947

Question 13

The main purpose of adjusting entries is to:

Accepted Answer

A) Record external transactions and events. 
B) Record internal transactions and events. 
C) Recognize assets purchased during the period. 
D) Recognize debts paid during the period. 
E) Correct errors. 
A) Record external transactions and events. 
B) Record internal transactions and events. 
C) Recognize assets purchased during the period. 
D) Recognize debts paid during the period. 
E) Correct errors.

Question 14

Which of the following statements is true?

Accepted Answer

A) Retained earnings must be closed each accounting period. 
B) A post-closing trial balance should include only permanent accounts. 
C) Information on the work sheet can be used in place of preparing financial statements. 
D) By using a work sheet to prepare adjusting entries,you need not post these entries to the ledger accounts 
E) Closing entries are only necessary if errors have been made. 
A) Retained earnings must be closed each accounting period. 
B) A post-closing trial balance should include only permanent accounts. 
C) Information on the work sheet can be used in place of preparing financial statements. 
D) By using a work sheet to prepare adjusting entries,you need not post these entries to the ledger accounts 
E) Closing entries are only necessary if errors have been made.

Question 15

A landscaping project was completed on December 31,but the customer has not yet been billed for the agreed-upon fee of $12,000.How would the company record the related adjusting entry?

Accepted Answer

A) Debit Accounts Receivable for $12,000 and credit Landscape Revenue for $12,000. 
B) Debit Cash for $12,000 and credit Landscape Revenue for $12,000. 
C) Debit Unearned Revenue for $12,000 and credit Landscape Revenue for $12,000. 
D) Debit Cash for $12,000 and credit Unearned Revenue for $12,000. 
E) Debit Landscape Revenue for $12,000 and credit Income Summary for $12,000. 
A) Debit Accounts Receivable for $12,000 and credit Landscape Revenue for $12,000. 
B) Debit Cash for $12,000 and credit Landscape Revenue for $12,000. 
C) Debit Unearned Revenue for $12,000 and credit Landscape Revenue for $12,000. 
D) Debit Cash for $12,000 and credit Unearned Revenue for $12,000. 
E) Debit Landscape Revenue for $12,000 and credit Income Summary for $12,000.

Question 16

Based on the following information,what would be the ending balance in the Retained Earnings account,assuming all accounts have a normal balance?

Accepted Answer

A) $15,847 
B) $13,718 
C) $13,155 
D) $13,284 
E) $13,847 
A) $15,847 
B) $13,718 
C) $13,155 
D) $13,284 
E) $13,847

Question 17

Prior to recording adjusting entries at the end of an accounting period,some accounts may not show proper financial statement amounts even though all transactions were correctly recorded.

Accepted Answer

A) True 
 B)False

Question 18

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Accepted Answer

A) Office Equipment 
B) Accumulated Depreciation-Office Equipment 
C) Depreciation Expense-Office Equipment 
D) Common Stock 
E) Salaries Payable 
A) Office Equipment 
B) Accumulated Depreciation-Office Equipment 
C) Depreciation Expense-Office Equipment 
D) Common Stock 
E) Salaries Payable

Question 19

Which of the following accounts would be closed at the end of the accounting period?

Accepted Answer

A) Accounts Receivable 
B) Unearned Consulting Fees 
C) Fees Earned 
D) Retained Earnings 
E) Land 
A) Accounts Receivable 
B) Unearned Consulting Fees 
C) Fees Earned 
D) Retained Earnings 
E) Land

Question 20

Match between columns
                        Premises: Used to record revenue earned but not received.
Used to record revenue received in advance.
Used to record wages owed, but not paid.
Used to record expiration of prepaid insurance.

Accepted Answer

The Answer of Unearned revenue and Accrued expense and Prepaid is...

Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.

On January 1,Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500,and an estimated useful life of five years.Using the straight-line method,what is the amount that should be recorded as depreciation on December 31?

Depreciation expense is an example of an accrued expense.

Use the following partial work sheet from Matthews Lanes to prepare its income statement,statement of changes in retained earnings,and a balance sheet.

A contra account is an account linked with another account; it is added to that account to show the proper net amount for that particular item.

Classified balance sheets commonly include the following categories. Indicate the typical classification of each item listed below by placing the correct balance sheet category in the blank space next to the item.

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

What is the total amount of current assets based on the following information,assuming all accounts have a normal balance?

Which of the following does not require an adjusting entry at year-end?

Earned but uncollected revenues that are recorded during the adjusting process with a credit to a revenue account and a debit to an expense account are referred to as accrued expenses.

The calendar year-end adjusted trial balance for Acosta Co.follows: Required: a.Prepare a classified year-end balance sheet.(Note: A $7,000 installment on the long-term note payable is due within one year.) b.Calculate the current ratio.

The main purpose of adjusting entries is to:

Which of the following statements is true?

A landscaping project was completed on December 31,but the customer has not yet been billed for the agreed-upon fee of $12,000.How would the company record the related adjusting entry?

Based on the following information,what would be the ending balance in the Retained Earnings account,assuming all accounts have a normal balance?

Prior to recording adjusting entries at the end of an accounting period,some accounts may not show proper financial statement amounts even though all transactions were correctly recorded.

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Which of the following accounts would be closed at the end of the accounting period?

Introducing Financial Accounting

Accounting System and Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 3: Adjusting Accounts for Financial Statements

Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.

On January 1,Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500,and an estimated useful life of five years.Using the straight-line method,what is the amount that should be recorded as depreciation on December 31?

Depreciation expense is an example of an accrued expense.

Use the following partial work sheet from Matthews Lanes to prepare its income statement,statement of changes in retained earnings,and a balance sheet.

A contra account is an account linked with another account; it is added to that account to show the proper net amount for that particular item.

Classified balance sheets commonly include the following categories. Indicate the typical classification of each item listed below by placing the correct balance sheet category in the blank space next to the item.

Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31.Determine the items A through H below.

What is the total amount of current assets based on the following information,assuming all accounts have a normal balance?

Which of the following does not require an adjusting entry at year-end?

Earned but uncollected revenues that are recorded during the adjusting process with a credit to a revenue account and a debit to an expense account are referred to as accrued expenses.

The calendar year-end adjusted trial balance for Acosta Co.follows: Required: a.Prepare a classified year-end balance sheet.(Note: A $7,000 installment on the long-term note payable is due within one year.) b.Calculate the current ratio.

The main purpose of adjusting entries is to:

Which of the following statements is true?

A landscaping project was completed on December 31,but the customer has not yet been billed for the agreed-upon fee of $12,000.How would the company record the related adjusting entry?

Based on the following information,what would be the ending balance in the Retained Earnings account,assuming all accounts have a normal balance?

Prior to recording adjusting entries at the end of an accounting period,some accounts may not show proper financial statement amounts even though all transactions were correctly recorded.

An error is indicated if the following account has a balance appearing on the post-closing trial balance:

Which of the following accounts would be closed at the end of the accounting period?

Introducing Financial Accounting

Accounting System and Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters