Question 1

What effect will this adjustment have on the accounting records?

Accepted Answer

A) increase net income 
B) increase revenues reported for the period 
C) decrease liabilities 
D) All of these choices 
A) increase net income 
B) increase revenues reported for the period 
C) decrease liabilities 
D) All of these choices

Question 2

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Accepted Answer

A) decreases the balance of an owner's equity account 
B) increases the balance of a liability account 
C) increases the balance of an asset account 
D) decreases the balance of an expense account 
A) decreases the balance of an owner's equity account 
B) increases the balance of a liability account 
C) increases the balance of an asset account 
D) decreases the balance of an expense account

Question 3

The net income reported on the income statement is $58,000.However,adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300.Net income,as corrected,is

Accepted Answer

A) $56,700 
B) $58,000 
C) $55,800 
D) $54,500 
A) $56,700 
B) $58,000 
C) $55,800 
D) $54,500

Question 4

At the end of the fiscal year,the usual adjusting entry for depreciation on equipment was omitted.Which of the following is true?

Accepted Answer

A) Total assets will be understated at the end of the current year. 
B) The balance sheet and income statement will be misstated, but the statement of owner's equity will be correct for the current year. 
C) Net income will be overstated for the current year. 
D) Total liabilities and total assets will be understated. 
A) Total assets will be understated at the end of the current year. 
B) The balance sheet and income statement will be misstated, but the statement of owner's equity will be correct for the current year. 
C) Net income will be overstated for the current year. 
D) Total liabilities and total assets will be understated.

Question 5

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

Accepted Answer

A) Total assets at the end of the year will be understated. 
B) Owner's equity at the end of the year will be understated. 
C) Net income for the year will be overstated. 
D) Insurance expense will be overstated. 
A) Total assets at the end of the year will be understated. 
B) Owner's equity at the end of the year will be understated. 
C) Net income for the year will be overstated. 
D) Insurance expense will be overstated.

Question 6

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,$200Unbilled consulting revenue,$700Rent expense for the month,$1,000Depreciation 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 7

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account,which of the following describes the effect of the debit portion of the entry?

Accepted Answer

A) increases the balance of a contra asset account 
B) increases the balance of an asset account 
C) decreases the balance of an owner's equity account 
D) increases the balance of an expense account 
A) increases the balance of a contra asset account 
B) increases the balance of an asset account 
C) decreases the balance of an owner's equity account 
D) increases the balance of an expense account

Question 8

Depreciation on an office building is $2,800.The adjusting entry on December 31 would be:

Accepted Answer

The answer of Depreciation on an office building is $2,800.The...

Question 9

The adjusting entry to record the depreciation of a building for the fiscal period is

Accepted Answer

A) debit Depreciation Expense; credit Building 
B) debit Depreciation Expense; credit Accumulated Depreciation 
C) debit Accumulated Depreciation; credit Depreciation Expense 
D) debit Building; credit Depreciation Expense 
A) debit Depreciation Expense; credit Building 
B) debit Depreciation Expense; credit Accumulated Depreciation 
C) debit Accumulated Depreciation; credit Depreciation Expense 
D) debit Building; credit Depreciation Expense

Question 10

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet.
-Wages are paid every Friday for the five-day workweek.The month ended on Monday and no adjustment was recorded.

Accepted Answer

A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated 
A) Assets and owner's equity overstated 
B) Assets and owner's equity understated 
C) Assets overstated and owner's equity understated 
D) Assets understated and owner's equity overstated 
E) Liabilities and owner's equity overstated
F)Liabilities and owner's equity understated
G)Liabilities overstated and owner's equity understated
H)Liabilities understated and owner's equity overstated

Question 11

Which of the following is the proper adjusting entry,based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000,for the fiscal year ending on April 30?

Accepted Answer

A) debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000 
B) debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000 
C) debit Prepaid Insurance, $11,000; credit Insurance Expense, $11,000 
D) debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000 
A) debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000 
B) debit Insurance Expense, $14,000; credit Prepaid Insurance, $14,000 
C) debit Prepaid Insurance, $11,000; credit Insurance Expense, $11,000 
D) debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000

Question 12

Prepaid expenses have

Accepted Answer

A) not yet been recorded as expenses but have been paid 
B) been recorded as expenses and paid 
C) been incurred and paid 
D) not yet been recorded as expenses 
A) not yet been recorded as expenses but have been paid 
B) been recorded as expenses and paid 
C) been incurred and paid 
D) not yet been recorded as expenses

Question 13

A one-year insurance policy was purchased on June 1 for $2,400.The adjusting entry on December 31 would be:

Accepted Answer

$2,400/12

Question 14

Indicate whether the following error would cause the adjusted trial balance totals to be unequal.If the error would cause the adjusted trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much.​The adjustment for accrued fees of $1,170 was journalized as a debit to Accounts Receivable for $1,170 and a credit to Fees Earned for $1,107.

Accepted Answer

The total will be un

Question 15

Zoey Bella Company has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.​

Accepted Answer

$10,000/5

Question 16

Prepare the required entries for the following transactions:

Accepted Answer

The answer of Prepare the required entries for the following...

Question 17

Which of the following is considered to be unearned revenue?

Accepted Answer

A) theater tickets sold last month for yesterday's performance 
B) theater tickets sold yesterday on credit for yesterday's performance 
C) theater tickets that were not sold for the current performance 
D) theater tickets sold for next month's performance 
A) theater tickets sold last month for yesterday's performance 
B) theater tickets sold yesterday on credit for yesterday's performance 
C) theater tickets that were not sold for the current performance 
D) theater tickets sold for next month's performance

Question 18

Match the type of account (a through e) with the business transactions that follow.
-Annual property taxes that are paid at the end of the year.

Accepted Answer

A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices 
A) Prepaid expense 
B) Accrued expense 
C) Unearned revenue 
D) Accrued revenue 
E) None of these choices

Question 19

At January 31,the end of the first month of the year,the usual adjusting entry transferring expired insurance to an expense account is omitted.Which items will be incorrectly stated,because of the error,on 
(a)the income statement for January and 
(b)the balance sheet as of January 31? Also indicate whether the items in error will be overstated or understated.

Accepted Answer

The answer of At January 31,the end of the first...

Question 20

List the four basic types of accounts that require adjusting entries and give an example of each.

Accepted Answer

1.Prepaid expenses; example: prepaid ins

What effect will this adjustment have on the accounting records?

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

The net income reported on the income statement is $58,000.However,adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300.Net income,as corrected,is

At the end of the fiscal year,the usual adjusting entry for depreciation on equipment was omitted.Which of the following is true?

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account,which of the following describes the effect of the debit portion of the entry?

Depreciation on an office building is $2,800.The adjusting entry on December 31 would be:

The adjusting entry to record the depreciation of a building for the fiscal period is

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Wages are paid every Friday for the five-day workweek.The month ended on Monday and no adjustment was recorded.

Which of the following is the proper adjusting entry,based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000,for the fiscal year ending on April 30?

Prepaid expenses have

A one-year insurance policy was purchased on June 1 for $2,400.The adjusting entry on December 31 would be:

Zoey Bella Company has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.

Prepare the required entries for the following transactions:

Which of the following is considered to be unearned revenue?

Match the type of account (a through e) with the business transactions that follow. -Annual property taxes that are paid at the end of the year.

List the four basic types of accounts that require adjusting entries and give an example of each.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 3: The Adjusting Process

What effect will this adjustment have on the accounting records?

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

The net income reported on the income statement is $58,000.However,adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300.Net income,as corrected,is

At the end of the fiscal year,the usual adjusting entry for depreciation on equipment was omitted.Which of the following is true?

At the end of the fiscal year,the usual adjusting entry to prepaid insurance to record expired insurance was omitted.Which of the following statements is true?

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account,which of the following describes the effect of the debit portion of the entry?

Depreciation on an office building is $2,800.The adjusting entry on December 31 would be:

The adjusting entry to record the depreciation of a building for the fiscal period is

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Wages are paid every Friday for the five-day workweek.The month ended on Monday and no adjustment was recorded.

Which of the following is the proper adjusting entry,based on a prepaid insurance account balance before adjustment of $14,000 and unexpired insurance of $3,000,for the fiscal year ending on April 30?

Prepaid expenses have

A one-year insurance policy was purchased on June 1 for $2,400.The adjusting entry on December 31 would be:

Zoey Bella Company has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.​

Prepare the required entries for the following transactions:

Which of the following is considered to be unearned revenue?

Match the type of account (a through e) with the business transactions that follow. -Annual property taxes that are paid at the end of the year.

List the four basic types of accounts that require adjusting entries and give an example of each.

Introduction to Accounting and Business

Analyzing Transactions

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Zoey Bella Company has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.