Exam 12: Accruals, Deferrals, and the Worksheet

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is a

On June 1,2016,Mighty Fast Flooring issued a 10-month,9 percent note for $4,000.The note was recorded in the Notes Payable-Trade account.The adjusting entry on December 31 to record the interest accrued (owed)on the note is:

If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is a

To determine the amount of yearly depreciation,the ____________________ is divided by the number of years in the asset's useful life.

On April 1,2016,a firm accepted a 3-month,10 percent note for $1,800 from a customer with an overdue balance.The accrued interest recorded for this note for the year ended May 31,2016,is

Under the accrual basis of accounting,only income that has been earned appears on the income statement.

The adjustment for merchandise inventory is made in ____________________ steps.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The beginning inventory for a merchandising business was $73,000,and the ending inventory is $66,000.

Merchandise inventory is adjusted in two steps because both the beginning and ending inventory figures are needed to prepare the income statement.

The stock of goods that a business has on hand for sale to customers is called ___________________.

The beginning merchandise inventory is removed from the books by closing the Merchandise Inventory account into the ____________________ account.

Complete the table below in accordance with the rules that must be followed to combine amounts in the Adjusted Trial Balance Section of the worksheet.Enter the new balance and whether it is entered as a debit or a credit.

The net income for an accounting period appears on the worksheet in the

Rose Bush Nursery purchased a delivery truck for $27,000.The truck is expected to have a useful life of 4 years and a residual value of $1,080.If the truck was purchased on June 1,2016,what is the amount of depreciation expense for the truck for the year ended December 31,2016?

On May 1,2016,a firm purchased a 1-year insurance policy for $3,600 and paid the full premium in advance.The insurance expense associated with this policy for the year ending December 31,2016,is

Which of the following statements is not correct?

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 $3,900.

On January 2,2016,a firm purchased equipment for $8,500.Depreciation expense for the year ending December 31,2016,given the straight-line method,a 5-year useful life,and a salvage value of $1,500,is

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 $5,600 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the ____________________ basis of accounting.