Question 1

The unadjusted trial balance reflects a normal balance for Wages Expense of $750.Accrued wages for the period are $1,045.The adjusted balance for Wages Expense is now a:

Accepted Answer

A) $295 debit. 
B) $295 credit. 
C) $1,795 debit. 
D) $1,795 credit.

Question 2

Supplies on hand were $900 at the start of the year.At the end of the year,it was determined that $350 of supplies had been used.What is the adjusting entry for supplies?

Accepted Answer

A) debit Supplies,$350;credit Supplies Expense,$350 
B) debit Supplies,$550;credit Supplies Expense,$550 
C) debit Supplies Expense,$350;credit Supplies,$350 
D) debit Supplies Expense,$550;credit Supplies,$550

Question 3

Recording Income Taxes Payable would be an example of a(n):

Accepted Answer

A) deferred expense. 
B) deferred revenue. 
C) accrued expense. 
D) accrued revenue.

Question 4

If a piece of equipment was purchased on September 1,it would have ________ months depreciation included in the adjusting entry for the calendar year.

Accepted Answer

A) 12 
B) 8 
C) 4 
D) 6

Question 5

The adjusted trial balance is the basis for the preparation of:

Accepted Answer

A) the Statement of Retained Earnings. 
B) the Income Statement. 
C) the Balance Sheet. 
D) all financial statements.

Question 6

A period of time,such as a month or quarter,could be considered a(n):

Accepted Answer

A) fiscal year. 
B) accounting period. 
C) revenue period. 
D) income period.

Question 7

The adjusted trial balance total:

Accepted Answer

A) is equal to the unadjusted trial balance total. 
B) is greater than the unadjusted trial balance total. 
C) is less than the unadjusted trial balance total. 
D) has no direct relationship to the unadjusted trial balance total.

Question 8

Dividend accounts are closed by crediting them and debiting Retained Earnings.

Accepted Answer

A) True 
 B)False

Question 9

The total revenues of $6,500,total expenses of $3,500 and dividends of $500 were recorded in the closing entries.The net change in Retained Earnings for the month was:

Accepted Answer

A) $6,000. 
B) $3,000. 
C) $2,500. 
D) $3,500.

Question 10

The unadjusted trial balance shows Accumulated Depreciation-Computer with a credit balance of $190.After determining depreciation expense is $45,the adjusted balance in the Accumulated Depreciation account for the computer will be a:

Accepted Answer

A) $45 debit. 
B) $190 credit. 
C) $235 credit. 
D) $145 debit.

Question 11

The unadjusted trial balance shows a $780 balance for Depreciation Expense.Depreciation of $235 was recorded for the period.The adjusted trial balance figure for Depreciation Expense is now a:

Accepted Answer

A) $545 debit. 
B) $545 credit. 
C) $1,015 debit. 
D) $1,015 credit.

Question 12

The unadjusted trial balance lists Supplies with a $678 balance.After taking an inventory of supplies,it was found that $390 were on hand.The adjustment to Supplies Expense is a:

Accepted Answer

A) $390 debit. 
B) $390 credit. 
C) $288 debit. 
D) $288 credit.

Question 13

At the beginning of the period,the Supplies account has a balance of $500.At the end of the period,the balance in the account was $275.The adjusting entry would be:

Accepted Answer

A) debit Supplies Expense,$275;credit Supplies,$275. 
B) debit Supplies,$275;credit Supplies Expense,$275. 
C) debit Supplies Expense,$225;credit Supplies,$225. 
D) debit Supplies,$225;credit Supplies Expense,$225.

Question 14

Salary expense is $2,200 per day,Monday through Friday,and the business pays employees each Friday.If December 31 falls on a Tuesday,the adjusting entry to record accrued salaries would be to:

Accepted Answer

A) debit Salaries Payable,$2,200;credit Salaries Expense,$2,200. 
B) debit Salaries Expense,$4,400;credit Salaries Payable,$4,400. 
C) debit Salaries Expense,$2,200;credit Salaries Payable,$2,200. 
D) debit Salaries Payable,$4,400;credit Salaries Expense,$4,400.

Question 15

The balance in Unearned Revenues prior to adjustment was $2,750.If the amount still unearned as of the end of the period is $1,100,the adjusting entry needed would be to:

Accepted Answer

A) debit Cash,$2,750;credit Unearned Service Revenue,$785. 
B) debit Unearned Service Revenue,$1,100;credit Service Revenue,$1,100. 
C) debit Unearned Service Revenue,$1,650;credit Service Revenue,$1,650. 
D) debit Service Revenue,$1,650;credit Unearned Service Revenue,$1,650.

Question 16

The balance for the Land account on the adjusted trial balance:

Accepted Answer

A) must be equal to the balance on the unadjusted trial balance. 
B) must be greater than the balance on the unadjusted trial balance. 
C) must be less than the balance on the unadjusted trial balance. 
D) has no relationship to the balance on the unadjusted trial balance.

Question 17

The Statement of Retained Earnings that is prepared from the adjusted trial balance begins with the:

Accepted Answer

A) first stock account listed on the adjusted trial balance. 
B) Retained Earnings balance on the adjusted trial balance. 
C) first dividend account listed on the adjusted trial balance. 
D) net income listed on the adjusted trial balance.

Question 18

GAAP requires the use of accrual accounting.

Accepted Answer

A) True 
 B)False

Question 19

Accounts Receivable and Accounts Payable are examples of accruals.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following accounts does NOT go onto the Income Statement from the adjusted trial balance?

Accepted Answer

A) Sales 
B) Insurance Expense 
C) Accounts Receivable 
D) Rent Expense

Exam 3: Adjusting and Closing Entries

The unadjusted trial balance reflects a normal balance for Wages Expense of $750.Accrued wages for the period are $1,045.The adjusted balance for Wages Expense is now a:

Supplies on hand were $900 at the start of the year.At the end of the year,it was determined that $350 of supplies had been used.What is the adjusting entry for supplies?

Recording Income Taxes Payable would be an example of a(n) :

If a piece of equipment was purchased on September 1,it would have ________ months depreciation included in the adjusting entry for the calendar year.

The adjusted trial balance is the basis for the preparation of:

A period of time,such as a month or quarter,could be considered a(n) :

The adjusted trial balance total:

Dividend accounts are closed by crediting them and debiting Retained Earnings.

The total revenues of $6,500,total expenses of $3,500 and dividends of $500 were recorded in the closing entries.The net change in Retained Earnings for the month was:

The unadjusted trial balance shows Accumulated Depreciation-Computer with a credit balance of $190.After determining depreciation expense is $45,the adjusted balance in the Accumulated Depreciation account for the computer will be a:

The unadjusted trial balance shows a $780 balance for Depreciation Expense.Depreciation of $235 was recorded for the period.The adjusted trial balance figure for Depreciation Expense is now a:

The unadjusted trial balance lists Supplies with a $678 balance.After taking an inventory of supplies,it was found that $390 were on hand.The adjustment to Supplies Expense is a:

At the beginning of the period,the Supplies account has a balance of $500.At the end of the period,the balance in the account was $275.The adjusting entry would be:

Salary expense is $2,200 per day,Monday through Friday,and the business pays employees each Friday.If December 31 falls on a Tuesday,the adjusting entry to record accrued salaries would be to:

The balance in Unearned Revenues prior to adjustment was $2,750.If the amount still unearned as of the end of the period is $1,100,the adjusting entry needed would be to:

The balance for the Land account on the adjusted trial balance:

The Statement of Retained Earnings that is prepared from the adjusted trial balance begins with the:

GAAP requires the use of accrual accounting.

Accounts Receivable and Accounts Payable are examples of accruals.

Which of the following accounts does NOT go onto the Income Statement from the adjusted trial balance?