Exam 3: The Adjusting Process

The accountant of Omega Company failed to make an adjusting entry to record $6,000 of unearned service revenue that has now been earned.Assume the deferred revenue was initially recorded as a liability.Which of the following statements is TRUE?

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

Which of the following assumes that the financial statements of a business can be prepared for specific periods?

In cash basis accounting,revenue is recorded when cash is received,and expenses are recorded when they are paid.

Oakland Tax Planning Service bought computer equipment for $24,000 on January 1,2018.It has an estimated useful life of four years and zero residual value.Oakland uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of each month.Calculate the amount of Depreciation Expense for the period,January 1,2018 through September 30,2018,for this equipment.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)