Question 1

Which of the following accounts would be included in a post-closing trial balance?

Accepted Answer

A) Accounts Receivable. 
B) Dividends. 
C) Consulting Fees Earned. 
D) Depreciation Expense−Equipment. 
E) Salaries Expense. 
A) Accounts Receivable. 
B) Dividends. 
C) Consulting Fees Earned. 
D) Depreciation Expense−Equipment. 
E) Salaries Expense.

Question 2

Which of the following is the usual final step in the accounting cycle?

Accepted Answer

A) Journalizing transactions. 
B) Preparing an adjusted trial balance. 
C) Preparing a post-closing trial balance. 
D) Preparing the financial statements. 
E) Preparing a work sheet. 
A) Journalizing transactions. 
B) Preparing an adjusted trial balance. 
C) Preparing a post-closing trial balance. 
D) Preparing the financial statements. 
E) Preparing a work sheet.

Question 3

On November 1,Jasper Company loaned another company $100,000 at a 6.0% interest rate.The note receivable plus interest will not be collected until March 1 of the following year.The company's annual accounting period ends on December 31,and adjustments are only made at year-end.The adjusting entry needed on December 31 is:

Accepted Answer

A) No entry required. 
B) Debit Interest Expense,$5,000; credit Interest Payable,$5,000. 
C) Debit Interest Expense,$1,000; credit Note Payable,$1,000. 
D) Debit Interest Receivable,$500; credit Interest Revenue,$500. 
E) Debit Interest Receivable,$1,000; credit Interest Revenue,$1,000. 
A) No entry required. 
B) Debit Interest Expense,$5,000; credit Interest Payable,$5,000. 
C) Debit Interest Expense,$1,000; credit Note Payable,$1,000. 
D) Debit Interest Receivable,$500; credit Interest Revenue,$500. 
E) Debit Interest Receivable,$1,000; credit Interest Revenue,$1,000.

Question 4

On September 1,Kennedy Company loaned $100,000,at 12% annual interest,to a customer.Interest and principal will be collected when the loan matures one year from the issue date.Assuming adjustments are only made at year-end,what is the adjusting entry for accruing interest that Kennedy would need to make on December 31,the calendar year-end?

Accepted Answer

A) Debit Interest Expense,$12,000; credit Interest Payable,$12,000. 
B) Debit Interest Expense,$4,000; credit Interest Payable,$4,000. 
C) Debit Interest Receivable,$12,000; credit Cash,$12,000. 
D) Debit Interest Receivable,$4,000; credit Interest Revenue,$4,000. 
E) Debit Cash,$4,000; credit Interest Revenue,$4,000. 
A) Debit Interest Expense,$12,000; credit Interest Payable,$12,000. 
B) Debit Interest Expense,$4,000; credit Interest Payable,$4,000. 
C) Debit Interest Receivable,$12,000; credit Cash,$12,000. 
D) Debit Interest Receivable,$4,000; credit Interest Revenue,$4,000. 
E) Debit Cash,$4,000; credit Interest Revenue,$4,000.

Question 5

Holman Company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciated at $15,000 per year using the straight-line depreciation method,and only prepares adjustments at year-end.The adjusting entry needed to record annual depreciation is:

Accepted Answer

A) Debit Depreciation Expense,$15,000; credit Equipment,$15,000. 
B) Debit Equipment,$15,000; credit Accumulated Depreciation,$15,000. 
C) Debit Depreciation Expense,$10,000; credit Accumulated Depreciation,$10,000. 
D) Debit Depreciation Expense,$10,000; credit Equipment,$10,000. 
E) Debit Depreciation Expense,$15,000; credit Accumulated Depreciation,$15,000. 
A) Debit Depreciation Expense,$15,000; credit Equipment,$15,000. 
B) Debit Equipment,$15,000; credit Accumulated Depreciation,$15,000. 
C) Debit Depreciation Expense,$10,000; credit Accumulated Depreciation,$10,000. 
D) Debit Depreciation Expense,$10,000; credit Equipment,$10,000. 
E) Debit Depreciation Expense,$15,000; credit Accumulated Depreciation,$15,000.

Question 6

What is the proper adjusting entry at December 31,the end of the accounting period,if the balance in the prepaid insurance account is $7,750 before adjustment,and the unexpired amount per analysis of policies is $3,250?

Accepted Answer

A) Debit Insurance Expense,$3,250; credit Prepaid Insurance,$3,250. 
B) Debit Insurance Expense,$4,500; credit Prepaid Insurance,$4,500. 
C) Debit Prepaid Insurance,$4,500; credit Insurance Expense,$4,500. 
D) Debit Insurance Expense,$7,750; credit Prepaid Insurance,$7,750. 
E) Debit Cash,$7,750; Credit Prepaid Insurance,$7,750. 
A) Debit Insurance Expense,$3,250; credit Prepaid Insurance,$3,250. 
B) Debit Insurance Expense,$4,500; credit Prepaid Insurance,$4,500. 
C) Debit Prepaid Insurance,$4,500; credit Insurance Expense,$4,500. 
D) Debit Insurance Expense,$7,750; credit Prepaid Insurance,$7,750. 
E) Debit Cash,$7,750; Credit Prepaid Insurance,$7,750.

Question 7

On April 1,Garcia Publishing Company received $1,548 from Otisco,Inc.for 36-month subscriptions to several different magazines.The company credited Unearned Fees for the amount received and the subscriptions started immediately.Assuming adjustments are only made at year-end,What is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the second year?

Accepted Answer

A) debit Unearned Fees,$1,548; credit Fees Earned,$1,548. 
B) debit Unearned Fees,$516; credit Fees Earned,$516. 
C) debit Unearned Fees,$1,161; credit Fees Earned,$1,161. 
D) debit Unearned Fees,$129; credit Fees Earned,$129. 
E) debit Unearned Fees,$387; credit Fees Earned,$387. 
A) debit Unearned Fees,$1,548; credit Fees Earned,$1,548. 
B) debit Unearned Fees,$516; credit Fees Earned,$516. 
C) debit Unearned Fees,$1,161; credit Fees Earned,$1,161. 
D) debit Unearned Fees,$129; credit Fees Earned,$129. 
E) debit Unearned Fees,$387; credit Fees Earned,$387.

Question 8

Prepare general journal entries on December 31 to record the following unrelated year-end adjustments.
a.Estimated depreciation on equipment for the year,$4,500.
b.The Prepaid Insurance account has a $3,680 debit balance before adjustment.An examination of insurance policies shows $600 of insurance expired.
c.The Prepaid Insurance account has a $2,400 debit balance before adjustment.An examination of insurance policies shows $950 of unexpired insurance.
d.The company has three office employees who each earn $100 per day for a five-day workweek that ends on Friday.The employees were paid on Friday,December 26,and have worked full days on Monday,Tuesday,and Wednesday,December 29,30,and 31.
e.On November 1,the company received 6 months' rent in advance from a tenant whose rent is $700 per month.The $4,200 was credited to the Unearned Rent account.
f.The company collects rent monthly from its tenants.One tenant whose rent is $1,000 per month has not paid his rent for December.

Accepted Answer

The answer of Prepare general journal entries on December 31...

Question 9

A company issued financial statements for the year ended December 31,but failed to include the following adjusting entries:
A.Accrued interest revenue earned of $1,200.
B.Depreciation expense of $4,000.
C.Portion of prepaid insurance expired (an asset)used $1,100.
D.Accrued taxes of $3,200.
E.Revenues of $5,200,originally recorded as unearned,have been earned by the end of the year.
Determine the correct amounts for the December 31 financial statements by completing the following table:

Accepted Answer

The answer of A company issued financial statements for the...

Question 10

Truman had total assets of $149,501,000,net income of $6,276,090,and net sales of $209,203,000.Its profit margin was 3%.

Accepted Answer

A) True 
 B)False

Question 11

If all columns of a completed work sheet balance,you can be sure that no errors were made in its preparation.

Accepted Answer

A) True 
 B)False

Question 12

On January 1,Eastern College received $1,200,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees.The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term.Assuming the college prepares adjustments monthly,what amount of tuition revenue should the college recognize on February 28?

Accepted Answer

A) $300,000. 
B) $600,000. 
C) $800,000. 
D) $900,000. 
E) $1,200,000. 
A) $300,000. 
B) $600,000. 
C) $800,000. 
D) $900,000. 
E) $1,200,000.

Question 13

Describe the two alternate methods used to account for prepaid expenses.

Accepted Answer

The first method places all prepaid expe

Question 14

The aim of a post-closing trial balance is to verify that (1)total debits equal total credits for temporary accounts,and (2)all temporary accounts have zero balances.

Accepted Answer

A) True 
 B)False

Question 15

The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?

Accepted Answer

A) Debit Salaries Payable and credit Salaries Expense. 
B) Debit Salaries Expense and credit Cash. 
C) Debit Accrued Salaries and credit Salaries Payable. 
D) Debit Cash and credit Salaries Expense. 
E) Debit Salaries Expense and credit Salaries Payable. 
A) Debit Salaries Payable and credit Salaries Expense. 
B) Debit Salaries Expense and credit Cash. 
C) Debit Accrued Salaries and credit Salaries Payable. 
D) Debit Cash and credit Salaries Expense. 
E) Debit Salaries Expense and credit Salaries Payable.

Question 16

Which of the following types of businesses might have an operating cycle longer than one year?

Accepted Answer

A) Ski resort. 
B) Clothing retailer. 
C) Florist. 
D) Wheat farmer. 
E) Commercial airplane manufacturer. 
A) Ski resort. 
B) Clothing retailer. 
C) Florist. 
D) Wheat farmer. 
E) Commercial airplane manufacturer.

Question 17

Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:

Accepted Answer

A) Intangible expenses. 
B) Prepaid expenses. 
C) Unearned expenses. 
D) Net expenses. 
E) Accrued expenses. 
A) Intangible expenses. 
B) Prepaid expenses. 
C) Unearned expenses. 
D) Net expenses. 
E) Accrued expenses.

Question 18

________ are required at the end of the accounting period because certain internal transactions and events remain unrecorded.

Accepted Answer

The answer of ________ are required at the end of...

Question 19

Adjusting entries are usually entered in the work sheet before they are entered in the general journal.

Accepted Answer

A) True 
 B)False

Question 20

The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Retained earnings?

Accepted Answer

A) $80,000. 
B) $64,400. 
C) $43,000. 
D) $32,400. 
E) $42,400. 
A) $80,000. 
B) $64,400. 
C) $43,000. 
D) $32,400. 
E) $42,400.

Which of the following accounts would be included in a post-closing trial balance?

Which of the following is the usual final step in the accounting cycle?

Holman Company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciated at $15,000 per year using the straight-line depreciation method,and only prepares adjustments at year-end.The adjusting entry needed to record annual depreciation is:

What is the proper adjusting entry at December 31,the end of the accounting period,if the balance in the prepaid insurance account is $7,750 before adjustment,and the unexpired amount per analysis of policies is $3,250?

Truman had total assets of $149,501,000,net income of $6,276,090,and net sales of $209,203,000.Its profit margin was 3%.

If all columns of a completed work sheet balance,you can be sure that no errors were made in its preparation.

Describe the two alternate methods used to account for prepaid expenses.

The aim of a post-closing trial balance is to verify that (1)total debits equal total credits for temporary accounts,and (2)all temporary accounts have zero balances.

The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?

Which of the following types of businesses might have an operating cycle longer than one year?

Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:

________ are required at the end of the accounting period because certain internal transactions and events remain unrecorded.

Adjusting entries are usually entered in the work sheet before they are entered in the general journal.

The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Retained earnings?

Introducing Financial Statements

Financial Statements and the Accounting System

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 3: Adjusting Accounts for Financial Statements

Which of the following accounts would be included in a post-closing trial balance?

Which of the following is the usual final step in the accounting cycle?

Holman Company owns equipment with an original cost of $95,000 and an estimated salvage value of $5,000 that is being depreciated at $15,000 per year using the straight-line depreciation method,and only prepares adjustments at year-end.The adjusting entry needed to record annual depreciation is:

What is the proper adjusting entry at December 31,the end of the accounting period,if the balance in the prepaid insurance account is $7,750 before adjustment,and the unexpired amount per analysis of policies is $3,250?

Truman had total assets of $149,501,000,net income of $6,276,090,and net sales of $209,203,000.Its profit margin was 3%.

If all columns of a completed work sheet balance,you can be sure that no errors were made in its preparation.

Describe the two alternate methods used to account for prepaid expenses.

The aim of a post-closing trial balance is to verify that (1)total debits equal total credits for temporary accounts,and (2)all temporary accounts have zero balances.

The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?

Which of the following types of businesses might have an operating cycle longer than one year?

Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:

________ are required at the end of the accounting period because certain internal transactions and events remain unrecorded.

Adjusting entries are usually entered in the work sheet before they are entered in the general journal.

The following information is available for Brendon Company before closing the accounts.What will be the amount in the Income Summary account that should be closed to Retained earnings?

Introducing Financial Statements

Financial Statements and the Accounting System

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters