Question 1

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 2

On November 15,Great Designs Company purchased an advertising campaign for the month of December.Great Designs paid cash of $2,700 in advance.The advertising campaign ran in December and was completed on December 31.​
(a) Prepare all necessary journal entries for the advertising campaign for November and December.
(b) Explain why you prepared this/these journal entries.

Accepted Answer

The answer of On November 15,Great Designs Company purchased an...

Question 3

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Accepted Answer

A) True 
 B)False

Question 4

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet.
-Property taxes are paid annually.The estimated monthly amount for the taxes was not 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 5

Accrued salaries of $600 owed to employees for December 29,30,and 31 are not taken into consideration in preparing the financial statements for the year ended December 31.Indicate which items will be erroneously stated,because of the error,on 
(a)the income statement for the year and 
(b)the balance sheet as of December 31.Also indicate whether the items in error will be overstated or understated.

Accepted Answer

The answer of Accrued salaries of $600 owed to employees...

Question 6

Revenues and expenses should be recorded in the same period to which they relate.

Accepted Answer

A) True 
 B)False

Question 7

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 8

An example of deferred revenue is Unearned Rent.

Accepted Answer

A) True 
 B)False

Question 9

Ski Master Company pays weekly salaries of $18,000 on Friday for a five-day week ending on that day.Journalize the necessary adjusting entry at the end of the accounting period,assuming that the period ends on Wednesday.

Accepted Answer

The answer of Ski Master Company pays weekly salaries of...

Question 10

On January 1,Newman Company estimated its property tax to be $5,100 for the year.​

Accepted Answer

(a) $425

Question 11

On December 15,Great Designs Company hired an independent contractor for a project.The contractor completed the project on December 29 and submitted an invoice for $2,425 which was due on January 15.The amount was duly paid on January 15.​
(a) Prepare the journal entry or entries necessary to record these transactions.
(b) Explain why you prepared this/these journal entries.

Accepted Answer

The answer of On December 15,Great Designs Company hired an...

Question 12

Prior to the adjusting process,accrued revenue has

Accepted Answer

A) been earned and cash received 
B) been earned and not recorded as revenue 
C) not been earned but recorded as revenue 
D) not been recorded as revenue but cash has been received 
A) been earned and cash received 
B) been earned and not recorded as revenue 
C) not been earned but recorded as revenue 
D) not been recorded as revenue but cash has been received

Question 13

The account type and normal balance of Unearned Revenue would be

Accepted Answer

A) revenue, credit 
B) expense, debit 
C) liability, credit 
D) asset, debit 
A) revenue, credit 
B) expense, debit 
C) liability, credit 
D) asset, debit

Question 14

Deferred revenue is revenue that is

Accepted Answer

A) earned and the cash has been received 
B) earned but the cash has not been received 
C) not earned and the cash has not been received 
D) not earned but the cash has been received 
A) earned and the cash has been received 
B) earned but the cash has not been received 
C) not earned and the cash has not been received 
D) not earned but the cash has been received

Question 15

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable.This error will be detected when the adjusted trial balance is prepared.

Accepted Answer

A) True 
 B)False

Question 16

A business pays biweekly salaries of $20,000 every other Friday for a 10-day period ending on that day.The last payday of December is Friday,December 27.Assume the next pay period begins on Monday,December 30,and the proper adjusting entry is journalized at the end of the fiscal period (December 31).The entry for the payment of the payroll on Friday,January 10,includes a

Accepted Answer

A) debit to Salary Expense of $16,000 
B) debit to Salary Expense of $4,000 
C) credit to Salaries Payable of $16,000 
D) credit to Salaries Payable of $4,000 
A) debit to Salary Expense of $16,000 
B) debit to Salary Expense of $4,000 
C) credit to Salaries Payable of $16,000 
D) credit to Salaries Payable of $4,000

Question 17

As time passes,fixed assets other than land lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

Accepted Answer

A) equipment allocation 
B) depreciation 
C) accumulation 
D) matching 
A) equipment allocation 
B) depreciation 
C) accumulation 
D) matching

Question 18

A company receives $6,500 for two season tickets sold on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is a debit to Cash of $2,500,and a credit to Ticket Revenue of $2,500.

Accepted Answer

A) True 
 B)False

Question 19

The balance in the unearned fees account,before adjustment at the end of the year,is $10,250.Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.

Accepted Answer

The answer of The balance in the unearned fees account,before...

Question 20

The updating of accounts when financial statements are prepared is called the adjusting process.

Accepted Answer

A) True 
 B)False

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

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Property taxes are paid annually.The estimated monthly amount for the taxes was not recorded.

Revenues and expenses should be recorded in the same period to which they relate.

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

An example of deferred revenue is Unearned Rent.

Ski Master Company pays weekly salaries of $18,000 on Friday for a five-day week ending on that day.Journalize the necessary adjusting entry at the end of the accounting period,assuming that the period ends on Wednesday.

On January 1,Newman Company estimated its property tax to be $5,100 for the year.

Prior to the adjusting process,accrued revenue has

The account type and normal balance of Unearned Revenue would be

Deferred revenue is revenue that is

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable.This error will be detected when the adjusted trial balance is prepared.

As time passes,fixed assets other than land lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

A company receives $6,500 for two season tickets sold on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is a debit to Cash of $2,500,and a credit to Ticket Revenue of $2,500.

The balance in the unearned fees account,before adjustment at the end of the year,is $10,250.Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.

The updating of accounts when financial statements are prepared is called the adjusting process.

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

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

An adjusting entry would adjust an expense account so the expense is reported when incurred.

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Property taxes are paid annually.The estimated monthly amount for the taxes was not recorded.

Revenues and expenses should be recorded in the same period to which they relate.

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

An example of deferred revenue is Unearned Rent.

Ski Master Company pays weekly salaries of $18,000 on Friday for a five-day week ending on that day.Journalize the necessary adjusting entry at the end of the accounting period,assuming that the period ends on Wednesday.

On January 1,Newman Company estimated its property tax to be $5,100 for the year.​

Prior to the adjusting process,accrued revenue has

The account type and normal balance of Unearned Revenue would be

Deferred revenue is revenue that is

The adjustment for accrued fees was debited to Accounts Payable instead of Accounts Receivable.This error will be detected when the adjusted trial balance is prepared.

As time passes,fixed assets other than land lose their capacity to provide useful services.To account for this decrease in usefulness,the cost of fixed assets is systematically allocated to expense through a process called

A company receives $6,500 for two season tickets sold on September 1.If $2,500 is earned by December 31,the adjusting entry made at that time is a debit to Cash of $2,500,and a credit to Ticket Revenue of $2,500.

The balance in the unearned fees account,before adjustment at the end of the year,is $10,250.Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.

The updating of accounts when financial statements are prepared is called the adjusting process.

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

On January 1,Newman Company estimated its property tax to be $5,100 for the year.