Question 1

On January 1,Power House Co.prepaid the annual rent of $10,140.Prepare the journal entry to record this transaction.

Accepted Answer

The answer of On January 1,Power House Co.prepaid the annual...

Question 2

The net book value of a fixed asset is determined by the original cost

Accepted Answer

A)  less accumulated depreciation 
B)  less market value 
C)  less accumulated depreciation plus depreciation expense 
D)  plus accumulated depreciation 
A)  less accumulated depreciation 
B)  less market value 
C)  less accumulated depreciation plus depreciation expense 
D)  plus accumulated depreciation

Question 3

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

Accepted Answer

A)  debit Unearned Gym Memberships; credit Gym Memberships Revenue 
B)  debit Gym Memberships Revenue; credit Unearned Gym Memberships 
C)  debit Unearned Gym Memberships; credit Prepaid Gym Memberships 
D)  debit Gym Memberships Expense; credit Unearned Gym Memberships 
A)  debit Unearned Gym Memberships; credit Gym Memberships Revenue 
B)  debit Gym Memberships Revenue; credit Unearned Gym Memberships 
C)  debit Unearned Gym Memberships; credit Prepaid Gym Memberships 
D)  debit Gym Memberships Expense; credit Unearned Gym Memberships

Question 4

On March 1,a business paid $3,600 for a twelve-month liability insurance policy.On April 1,the business entered into a two-year rental contract for equipment at a total cost of $18,000.Determine the following amounts:
​
(a)insurance expense for the month of March
(b)balance in prepaid insurance as of March 31
(c)equipment rent expense for the month of April
(d)balance in prepaid equipment rental as of April 30

Accepted Answer

The answer of On March 1,a business paid $3,600 for...

Question 5

The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 for premiums paid during the year.Journalize the adjusting entry required at the end of the year,assuming the amount of unexpired insurance related to future periods is $4,100.

Accepted Answer

@#IMG-DLM& $6,600 +

Question 6

Unearned revenue is a liability.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

Accepted Answer

A)  debit Salaries Payable; credit Cash 
B)  debit Cash; credit Salaries Payable 
C)  debit Salaries Payable; credit Salaries Expense 
D)  debit Salaries Expense; credit Salaries Payable 
A)  debit Salaries Payable; credit Cash 
B)  debit Cash; credit Salaries Payable 
C)  debit Salaries Payable; credit Salaries Expense 
D)  debit Salaries Expense; credit Salaries Payable

Question 9

What effect will this adjusting journal entry have on the accounting records?

Accepted Answer

A)  increase income 
B)  decrease net income 
C)  decrease expenses 
D)  increase assets 
A)  increase income 
B)  decrease net income 
C)  decrease expenses 
D)  increase assets

Question 10

On December 31,a business estimates depreciation on equipment used during the first year of operations to be $2,900.(a)Journalize the adjusting entry required on December 31.(b)If the adjusting entry in (a)were omitted,which items would be erroneously stated on (1)the income statement for the year and (2)the balance sheet as of December 31?

Accepted Answer

The answer of On December 31,a business estimates depreciation on...

Question 11

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

Accepted Answer

A)  Record payment of wages. 
B)  Record wages paid last month. 
C)  Record wages paid in advance. 
D)  Record wages expense incurred and to be paid next month. 
A)  Record payment of wages. 
B)  Record wages paid last month. 
C)  Record wages paid in advance. 
D)  Record wages expense incurred and to be paid next month.

Question 12

Jordon James started JJJ Consulting on January 1.The following are the account balances at the end of the first month of business,before adjusting entries were recorded:
​
   Adjustment data:
Supplies on hand at the end of the month,$200
Unbilled consulting revenue,$700
Rent expense for the month,$1,000
Depreciation on equipment,$90
(a)Prepare the required adjusting entries,adding accounts as needed.
(b)Prepare an adjusted trial balance for JJJ Consulting as of January 31.
​

Accepted Answer

The answer of Jordon James started JJJ Consulting on January...

Question 13

A company realizes that the last two days' revenue for the month was billed but not recorded.The adjusting entry on December 31 is a debit to Accounts Receivable and a credit to Fees Earned.

Accepted Answer

A) True 
 B)False

Question 14

Generally accepted accounting principles require that companies use the ____ of accounting.

Accepted Answer

A)  cash basis 
B)  deferral basis 
C)  accrual basis 
D)  account basis 
A)  cash basis 
B)  deferral basis 
C)  accrual basis 
D)  account basis

Question 15

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 16

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

Accepted Answer

A)  Adjust supplies inventory to actual. 
B)  Record purchase of supplies. 
C)  Reduce supplies expense. 
D)  Record sale of supplies. 
A)  Adjust supplies inventory to actual. 
B)  Record purchase of supplies. 
C)  Reduce supplies expense. 
D)  Record sale of supplies.

Question 17

The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are prepared.

Accepted Answer

A) True 
 B)False

Question 18

An example of deferred revenue is Unearned Rent.

Accepted Answer

A) True 
 B)False

Question 19

Prior to the adjusting process,accrued expenses have

Accepted Answer

A)  not yet been incurred,paid,or recorded 
B)  been incurred,not paid,but have been recorded 
C)  been incurred,not paid,and not recorded 
D)  been paid but have not yet been incurred 
A)  not yet been incurred,paid,or recorded 
B)  been incurred,not paid,but have been recorded 
C)  been incurred,not paid,and not recorded 
D)  been paid but have not yet been incurred

Question 20

Depreciation on equipment for the year is $6,300.
(a)Record the journal entry if the company prepares adjustments once a year.
(b)Record the journal entry if the company prepares adjustments on a monthly basis.

Accepted Answer

The answer of Depreciation on equipment for the year is...

Exam 3: The Adjusting Process

On January 1,Power House Co.prepaid the annual rent of $10,140.Prepare the journal entry to record this transaction.

The net book value of a fixed asset is determined by the original cost

The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is

The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 for premiums paid during the year.Journalize the adjusting entry required at the end of the year,assuming the amount of unexpired insurance related to future periods is $4,100.

Unearned revenue is a liability.

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

The entry to adjust the accounts for salaries accrued at the end of the accounting period is

What effect will this adjusting journal entry have on the accounting records?

The following adjusting journal entry found in the journal is missing an explanation.Select the best explanation for the entry.

A company realizes that the last two days' revenue for the month was billed but not recorded.The adjusting entry on December 31 is a debit to Accounts Receivable and a credit to Fees Earned.

Generally accepted accounting principles require that companies use the ____ of accounting.

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

The following adjusting journal entry does not include an explanation.Select the best explanation for the entry.

The adjusted trial balance verifies that total debits equals total credits before the adjusting entries are prepared.

An example of deferred revenue is Unearned Rent.

Prior to the adjusting process,accrued expenses have

Depreciation on equipment for the year is $6,300. (a)Record the journal entry if the company prepares adjustments once a year. (b)Record the journal entry if the company prepares adjustments on a monthly basis.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

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