Question 1

The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would

Accepted Answer

A)  understate the liabilities. 
B)  overstate the liabilities. 
C)  overstate net income. 
D)  None of these are correct. 
A)  understate the liabilities. 
B)  overstate the liabilities. 
C)  overstate net income. 
D)  None of these are correct.

Question 2

Juliet Dance Academy estimated depreciation on its building at $400. The adjusting entry for depreciation of the building would include

Accepted Answer

A)  a debit to Accumulated Depreciation for $400. 
B)  a debit to Depreciation Expense for $400. 
C)  a credit to Building for $400. 
D)  a credit to Depreciation Expense for $400. 
A)  a debit to Accumulated Depreciation for $400. 
B)  a debit to Depreciation Expense for $400. 
C)  a credit to Building for $400. 
D)  a credit to Depreciation Expense for $400.

Question 3

If a credit adjustment is added to a credit amount, the result is a credit.

Accepted Answer

A) True 
 B)False

Question 4

Walter's Windows showed supplies available during the year of $1,700. A count of the supplies on hand as of October 31 is $600. The adjusting entry for Store Supplies expense would include

Accepted Answer

A)  a debit to Store Supplies Expense for $600. 
B)  a credit to Store Supplies Expense for $600. 
C)  a debit to Store Supplies for $1,100. 
D)  a debit to Store Supplies Expense for $1,100. 
A)  a debit to Store Supplies Expense for $600. 
B)  a credit to Store Supplies Expense for $600. 
C)  a debit to Store Supplies for $1,100. 
D)  a debit to Store Supplies Expense for $1,100.

Question 5

The ending figure for capital, used on the balance sheet, will be obtained from

Accepted Answer

A)  balance sheet credit column of the worksheet. 
B)  the statement of owner's equity. 
C)  balance sheet debit column of the worksheet. 
D)  credit column of the income statement. 
A)  balance sheet credit column of the worksheet. 
B)  the statement of owner's equity. 
C)  balance sheet debit column of the worksheet. 
D)  credit column of the income statement.

Question 6

BC Tea Company depreciation for the month is $150. The adjusting journal entry is

Accepted Answer

A)  Depreciation Expense 150 Accumulated Depreciation 150 
B)  Depreciation Expense 150 Depreciation Payable 150 
C)  Depreciation Expense 150 Equipment 150 
D)  Accumulated Depreciation 150 Depreciation Expense 150 
A)  Depreciation Expense 150 Accumulated Depreciation 150 
B)  Depreciation Expense 150 Depreciation Payable 150 
C)  Depreciation Expense 150 Equipment 150 
D)  Accumulated Depreciation 150 Depreciation Expense 150

Question 7

The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,000, and Depreciation Expense, $700. What was the balance in the Accumulated Depreciation account before the adjustment?

Accepted Answer

A)  $1,700 
B)  $300 
C)  $700 
D)  $1,000 
A)  $1,700 
B)  $300 
C)  $700 
D)  $1,000

Question 8

The adjusting entry for accrued salaries is to

Accepted Answer

A)  debit Salaries Expense; credit Salaries Payable. 
B)  debit Salaries Expense; credit Cash. 
C)  debit Salaries Payable; credit Salaries Expense. 
D)  debit Cash; credit Salaries Expense. 
A)  debit Salaries Expense; credit Salaries Payable. 
B)  debit Salaries Expense; credit Cash. 
C)  debit Salaries Payable; credit Salaries Expense. 
D)  debit Cash; credit Salaries Expense.

Question 9

The worksheet is a formal statement.

Accepted Answer

A) True 
 B)False

Question 10

The adjusting entry to record the expired rent would be to

Accepted Answer

A)  debit Prepaid Rent; credit Rent Expense. 
B)  debit Cash; credit Prepaid Rent. 
C)  debit Prepaid Rent; credit Cash. 
D)  debit Rent Expense; credit Prepaid Rent. 
A)  debit Prepaid Rent; credit Rent Expense. 
B)  debit Cash; credit Prepaid Rent. 
C)  debit Prepaid Rent; credit Cash. 
D)  debit Rent Expense; credit Prepaid Rent.

Question 11

Regarding the adjusted trial balance columns on a worksheet, all but one of the following statements are TRUE.

Accepted Answer

A)  Combining a debit and a credit amount means you place the resulting total on the side which is smallest. 
B)  Two debits on a line are added together. 
C)  The adjusted trial balance columns result from a combination of original amounts and adjustments. 
D)  Two credits on a line are added together. 
A)  Combining a debit and a credit amount means you place the resulting total on the side which is smallest. 
B)  Two debits on a line are added together. 
C)  The adjusted trial balance columns result from a combination of original amounts and adjustments. 
D)  Two credits on a line are added together.

Question 12

Total wages per week are $6,700. You need to accrue $4,020 of wages at period end. The adjusting entry would include which of the following?

Accepted Answer

A)  Credit Wages Expense, $4,020; debit Accrued Wages, $4,020 
B)  Debit Wages Expense, $4,020; credit Accrued Wages, $4,020 
C)  Debit Wages Expense, $2,680; credit Accrued Wages, $2,680 
D)  Debit Wages Expense, $2,680; credit Cash, $2,680 
A)  Credit Wages Expense, $4,020; debit Accrued Wages, $4,020 
B)  Debit Wages Expense, $4,020; credit Accrued Wages, $4,020 
C)  Debit Wages Expense, $2,680; credit Accrued Wages, $2,680 
D)  Debit Wages Expense, $2,680; credit Cash, $2,680

Question 13

The cost of an asset less accumulated depreciation equals

Accepted Answer

A)  residual value. 
B)  book value. 
C)  depreciation expense. 
D)  None of these answers are correct. 
A)  residual value. 
B)  book value. 
C)  depreciation expense. 
D)  None of these answers are correct.

Question 14

As Prepaid Rent is used, the asset becomes a(n)

Accepted Answer

A)  liability. 
B)  expense. 
C)  contra-asset. 
D)  revenue. 
A)  liability. 
B)  expense. 
C)  contra-asset. 
D)  revenue.

Question 15

Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent) at the end of the period are called

Accepted Answer

A)  closing entries. 
B)  adjusting entries. 
C)  sales entries. 
D)  None of the above are correct. 
A)  closing entries. 
B)  adjusting entries. 
C)  sales entries. 
D)  None of the above are correct.

Question 16

On the worksheet, the Balance Sheet debit column totaled $1,400 and the credit column totaled $1,300. What is the amount of Net Loss?

Accepted Answer

$100 ($1,4

Question 17

Which of the following transactions would result in an accrual?

Accepted Answer

A)  Salary expense has been incurred but unpaid 
B)  Rent expired for the month 
C)  Supplies used during the accounting period 
D)  Equipment depreciated over the period 
A)  Salary expense has been incurred but unpaid 
B)  Rent expired for the month 
C)  Supplies used during the accounting period 
D)  Equipment depreciated over the period

Question 18

The ending balances in the ledger after posting the adjusting entries, will be the same amounts that are found on the worksheet in the adjusted trial balance column.

Accepted Answer

A) True 
 B)False

Question 19

On a worksheet, the balance sheet debit column total is $5,000 and the credit column total is $4,000. Which of the following statements is CORRECT?

Accepted Answer

A)  The company had a net income of $1,000. 
B)  The company had a loss of $1,000. 
C)  The company's expenses were greater than revenues. 
D)  None of the above are correct. 
A)  The company had a net income of $1,000. 
B)  The company had a loss of $1,000. 
C)  The company's expenses were greater than revenues. 
D)  None of the above are correct.

Question 20

Given the trial balance and adjustment columns of the worksheet, complete the adjusted trial balance column for the company.
                   Trial              Adjusted                      Balance       Adjustments       Trial Balance               Accounts       DR       CR       DR       CR       DR       CR               Cash       950                                                  Accts. Rec.       600                                                  Supplies       150                     100                             Prepaid Rent       500                     250                             Prepaid Ins.       400                     80                             Equipment       5,000                                                  Accumulated Depreciation              1,000              100                             Accts. Pay              500                                           Capital              3,500                                           Fees Earned              3,500                                           Wages Exp.       400              200                                    Depreciation Expense                     100                                    Rent Expense                     250                                    Supplies Expense                     100                                    Insurance Expense                     80                                    Wages Payable                                                         Total       8,000       8,000       730       730

Accepted Answer

Trial Adjusted
Balan

The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would

Juliet Dance Academy estimated depreciation on its building at $400. The adjusting entry for depreciation of the building would include

If a credit adjustment is added to a credit amount, the result is a credit.

Walter's Windows showed supplies available during the year of $1,700. A count of the supplies on hand as of October 31 is $600. The adjusting entry for Store Supplies expense would include

The ending figure for capital, used on the balance sheet, will be obtained from

BC Tea Company depreciation for the month is $150. The adjusting journal entry is

The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,000, and Depreciation Expense, $700. What was the balance in the Accumulated Depreciation account before the adjustment?

The adjusting entry for accrued salaries is to

The worksheet is a formal statement.

The adjusting entry to record the expired rent would be to

Regarding the adjusted trial balance columns on a worksheet, all but one of the following statements are TRUE.

Total wages per week are $6,700. You need to accrue $4,020 of wages at period end. The adjusting entry would include which of the following?

The cost of an asset less accumulated depreciation equals

As Prepaid Rent is used, the asset becomes a(n)

Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent) at the end of the period are called

On the worksheet, the Balance Sheet debit column totaled $1,400 and the credit column totaled $1,300. What is the amount of Net Loss?

Which of the following transactions would result in an accrual?

The ending balances in the ledger after posting the adjusting entries, will be the same amounts that are found on the worksheet in the adjusted trial balance column.

On a worksheet, the balance sheet debit column total is $5,000 and the credit column total is $4,000. Which of the following statements is CORRECT?

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

	Trial				Adjusted
	Balance		Adjustments		Trial Balance
Accounts	DR	CR	DR	CR	DR	CR
Cash	950
Accts. Rec.	600
Supplies	150			100
Prepaid Rent	500			250
Prepaid Ins.	400			80
Equipment	5,000
Accumulated Depreciation		1,000		100
Accts. Pay		500
Capital		3,500
Fees Earned		3,500
Wages Exp.	400		200
Depreciation Expense			100
Rent Expense			250
Supplies Expense			100
Insurance Expense			80
Wages Payable
Total	8,000	8,000	730	730

Exam 4: The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The adjustment for accrued wages included the entire pay period, some of which occurs next month. This would

Juliet Dance Academy estimated depreciation on its building at $400. The adjusting entry for depreciation of the building would include

If a credit adjustment is added to a credit amount, the result is a credit.

Walter's Windows showed supplies available during the year of $1,700. A count of the supplies on hand as of October 31 is $600. The adjusting entry for Store Supplies expense would include

The ending figure for capital, used on the balance sheet, will be obtained from

BC Tea Company depreciation for the month is $150. The adjusting journal entry is

The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,000, and Depreciation Expense, $700. What was the balance in the Accumulated Depreciation account before the adjustment?

The adjusting entry for accrued salaries is to

The worksheet is a formal statement.

The adjusting entry to record the expired rent would be to

Regarding the adjusted trial balance columns on a worksheet, all but one of the following statements are TRUE.

Total wages per week are $6,700. You need to accrue $4,020 of wages at period end. The adjusting entry would include which of the following?

The cost of an asset less accumulated depreciation equals

As Prepaid Rent is used, the asset becomes a(n)

Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent) at the end of the period are called

On the worksheet, the Balance Sheet debit column totaled $1,400 and the credit column totaled $1,300. What is the amount of Net Loss?

Which of the following transactions would result in an accrual?

The ending balances in the ledger after posting the adjusting entries, will be the same amounts that are found on the worksheet in the adjusted trial balance column.

On a worksheet, the balance sheet debit column total is $5,000 and the credit column total is $4,000. Which of the following statements is CORRECT?

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Banking Procedures and Control of Cash

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters