Exam 3: The Adjusting Process

The employees of Sinclair Services,Inc.worked the last two weeks of December.They received their paychecks on January 2.Which of the following accounts should appear on the balance sheet as of December 31?

Adjusting entries may involve any account,including Cash.

A business hired a repair service to overhaul its plumbing system.The repair service began work on September 15 and completed it on October 15.The business agreed to pay the service $4,000 when the work was completed.As of September 30,the work was 50% complete,and the business made an adjusting entry to accrue repair expense as of the end of September.On October 15,the work was completed,and the repair service was paid in full.Provide the journal entry for the cash payment on October 15.(Ignore explanation).

Williams Enterprises prepaid six months of office rent totaling $8,000 on October 1,2017.Assuming Williams records deferred expenses using the alternative treatment,what would be the entry on October 1,2017?

On June 1,Edison,Inc.borrowed $24,000 on a one-year Note Payable with an interest rate of 10% per year.It will repay the principal and interest at the end of the one-year period.The company makes accrual adjustments at the end of each month.The company should record interest expense of $2,400 on June 30.

The expected value of a depreciable asset at the end of its useful life is called ________.

On September 1,2016,Joy,Inc.paid $8,000 in advance for an eight-month rental space covering the period of September,2016 through April 2017.The deferred expense was initially recorded as an asset.Joy,Inc.makes adjusting entries once a year at year-end.The adjusting entry on December 31,2016 would include a ________.

Deferred revenues are assets because the business has collected the cash before earning the revenue.

The asset account,Office Supplies had a beginning balance of $5,300.During the accounting period,office supplies were purchased,on account,for $4,900.A physical count,on the last day of the accounting period,shows $2,300 of office supplies on hand.What is the amount of Supplies Expense for the accounting period?

To match expenses against revenues means to ________.

All of the accounts and the account balances of a company appear on the ________.

Pluto,Inc.sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue.At the end of each month,the company makes an adjusting entry to account for the tickets used during the month (ticket revenue. )On March 1,the Unearned Revenue account had a credit balance of $5,000.During March,it sold 600 tickets at $40 each,and 550 tickets were used during the month.What is the balance in Unearned Revenue at the end of March?

On January 1,2016,Prepaid Insurance of Maywood,Inc.had a beginning balance of $1,400.Three months of insurance premiums remain in the beginning balance.On February 1,2016,the company paid an annual insurance premium in the amount of $3,700 for the period beginning April 1.On February 28,2016,the balance in Prepaid Insurance is $934.The deferred expense was initially recorded as an asset.

Accumulated Depreciation is a(n)________ account and carries a normal ________ balance.

The depreciation method that allocates an equal amount of depreciation each year is called the straight-line method.

Stancil Enterprises prepaid four months of office rent totaling $9,000 on October 1,2017.Assuming Stancil records deferred expenses using the alternative treatment,what would be the adjusting entry recorded on December 31,2017?

Russin Tax Planning Service bought computer equipment for $22,000 on January 1,2016.It has an estimated useful life of four years and zero residual value.Russin uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month.Calculate the amount of Depreciation Expense for the period,January 1,2016 through September 30,2016,for this equipment.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Holland,Inc.purchased manufacturing equipment for $12,600.It has an estimated useful life of seven years and no residual value.The company should record depreciation expense of $100 per month.(Assume that the company uses the straight-line method. )

Bright Lights Electrical,Inc.performed services of $8,000 on January 24 and invoiced the customer.Bright Lights received the $8,000 on January 31.Provide the journal entry on January 31 when the cash was received.(Ignore explanation. )