Exam 12: Accruals, Deferrals, and the Worksheet

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30,2013.The amount of advertising expense reported on the Income Statement for the year ending December 31,2016,for this advertising contract is

The entry to record the ending merchandise inventory in the books includes a ____________________ to the Merchandise Inventory account.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $2,800 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.During the year,the firm had net credit sales of $980,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

On October 1,2016,a firm accepted a 4-month,8% note for $12,000 from a customer with an overdue account balance.The accrued interest recorded for this note on December 31,2016,is

On Oct 1,2016,a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance.The adjustment needed on December 31,2016,to report the amount of insurance that had expired,would be:

The balance of the Merchandise Inventory account shown in the Adjusted Trial balance section of the worksheet is extended to the Balance Sheet Debit column of the worksheet.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $4,300.

The adjusting entry to record accrued interest on a note payable requires a debit to

Under the accrual basis of accounting,the expense for uncollectible accounts is estimated and recorded before specific accounts are actually written off.

To remove the beginning inventory from the books,the Income Summary account is credited for the amount of the beginning inventory.

Accrued expenses are

Design Home Furnishings is a retail store.On December 31,2016,the firm's general ledger contained the following accounts and balances.Adjustments are shown below.Prepare the Trial Balance section,record the adjustments in the Adjustments section,and complete the worksheet for the year ended December 31,2016.Round to the nearest whole dollar.

The adjusting entry for uncollectible accounts requires a debit to

On July 31,2016,after one month of operation,the general ledger of Dakota Consulting contained the following accounts and balances.The firm adjusts losses from uncollectible accounts only at the end of the fiscal year.Monthly adjustments are listed below.Prepare the Trial Balance,Adjustments,and Adjusted Trial Balance sections of a worksheet.

The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two

When an adjusting entry is made for supplies used,the Supplies Expense account is increased and the ____________________ account is decreased.

When the accrual basis of accounting is used,expenses are recognized only in the period during which they are paid.

If a company uses the periodic inventory system,purchases of merchandise are

The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.