Exam 3: Adjusting the Accounts

Scotsman Company prepares monthly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September. Instructions Using the above additional information, prepare the adjusting entries that should be made by Scotsman Company on September 30.

163. Relevant accounting information

The time period assumption states

If a company fails to make an adjusting entry to record supplies expense, then

Which one of the following is not an application of revenue recognition?

An accounting period that is one year in length is referred to as a ______________ year.

Gwynn Company has an accounting fiscal year which ends on June 30. The company also has a policy of paying the weekly payroll on Friday. Payroll records indicate the following salary costs were incurred. Instructions (a) Prepare any necessary adjusting journal entries that should be made at year end on June 30. (b) Prepare the journal entry to record the payment of the weekly payroll on July 2.

Depreciation is a ______________ allocation process rather than a process of ______________.

On January 1, 2018, Bottle Rockets Corp. purchased a general liability insurance policy for $9,000 to provide coverage for the calendar year. 1. If the company recorded the policy as an asset when purchased, what is the monthly adjusting journal entry that should be recorded at January 31, 2018? *2. If the company expensed the cost of the policy on January 1, 2018, what is the monthly adjusting entry that should be recorded at January 31, 2018?

169. Which of the following is a constraint in accounting?

Prepare the necessary adjusting entry for each of the following: 1. Services provided but unrecorded totaled $700. 2. Accrued salaries at year-end are $1,000. 3. Depreciation on equipment for the year is $600.

REM Real Estate received a check for $27,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $27,000. Financial statements will be prepared on July 31. REM Real Estate should make the following adjusting entry on July 31:

The time period assumption states that the economic life of a business can be divided into a. equal time periods. b. cyclical time periods. c. artificial time periods. d. perpetual time periods.

On June 1, during its first month of operations, Crooked Rain purchased supplies for $4,500 and debited the supplies account for that amount. At June 30, an inventory of supplies showed $1,000 of supplies on hand. What adjusting journal entry should be made for June?

The expense recognition principle matches

If an adjustment is needed for unearned revenues, the

On July 1, 2018, Damlen Jurado Company pays $12,000 to its insurance company for a 2-year insurance policy. Instructions Prepare the necessary journal entries for Damlen Jurado on July 1 and December 31.

Accrued revenues are revenues which have been received but not yet recognized.

One part of eight adjusting entries is given below. Instructions Indicate the account title for the other part of each entry. 1. Unearned Service Revenue is debited. 2. Prepaid Rent is credited. 3. Accounts Receivable is debited. 4. Depreciation Expense is debited. 5. Salaries and Wages Expense is debited. 6. Interest Payable is credited. 7. Service Revenue is credited (give two possible debit accounts). 8. Supplies Expense is debited.

The time period assumption is also referred to as the