Given the following adjusted tabular summary amounts: $\begin{array} { l r } \text { Cash } & \$ 1,662 \\ \text { Accounts receivable } & 2,098 \\ \text { Inventory } & 3,124 \\ \text { Prepaid rent } & 86 \\ \text { Equipment } & 300 \\ \text { Accumulated depreciation-equipment } & 52 \\ \text { Accounts payable } & 82 \\ \text { Unearned service revenue } & 122 \\ \text { Common stock } & 206 \\ \text { Retained earnings } & 6,610 \\ \text { Service revenue } & 368 \\ \text { Interest revenue } & 56 \\ \text { Salaries and wages expense } & 160 \\ \text { Travel expense } & 66 \end{array}$ Net income for the year is:

A) $198. B) $370. C) $424. D) $596. A) $198. B) $370. C) $424. D) $596.

Wang Company had the following transactions during 2022: F1F1F1S1F1F1F10Sales of $10800 on account F1F1F1S1F1F1F10Collected $4800 for services to be performed in 2023 F1F1F1S1F1F1F10Paid $2600 cash in salaries F1F1F1S1F1F1F10Purchased airline tickets for $600 in December for a trip to take place in 2023 What is Wang's 2022 net income using cash basis accounting?

A) $1600 B) $2800 C) $13000 D) $2200 A) $1600 B) $2800 C) $13000 D) $2200

Harrison Tool Company purchased supplies on account during the month of December for $3000.The bill will be paid on January 7.At the end of the month the company's records included the following tabular analysis: $\begin{array}{llcc} \underline{\text { Assets } } &= & \underline{\text { Liabilities }} &+ \underline{ \text { Stockholders' Equity} } \end{array}$ $\begin{array}{c} \begin{array}{lll} \\ \\ \text {Bal.}\\ \hline \text {Dec. 31}\\ \hline \text {Adj. Bal.}\\ \hline \end{array} \begin{array}{l} \\ \underline{\text { Supplies }}=\\ 3,500 \\ \hline-2,000 \\ \hline 1,500\\ \hline \end{array} \begin{array}{c} \text {Accounts}\\ \underline{\text { Payable }}\\ 3,000\\ \hline\\ \hline\\ \hline \end{array} \begin{array}{c} \text {common}\\ \underline{\text {Stock}}\\ \\ \hline\\ \hline\\ \hline \end{array} \begin{array}{l} \\ \underline{\text {Revenue }} -\\ \\ \hline\\ \hline\\ \hline \end{array} \begin{array}{lll} \text { Supplies }\\ \underline{\text {Expense}} - \\ -0 \\ \hline -2,000 \\ \hline -2,000 \\ \hline \end{array} \begin{array}{lll} \\ \underline{\text { Div. }}\\ \\ \hline\\ \hline\\ \hline \end{array} \end{array}$ Harrison Company's financial statements will report:

A) Supplies Expense of $3000 B) Supplies of $3000 C) Supplies Expense of $2000 D) Accounts Payable of $1500 A) Supplies Expense of $3000 B) Supplies of $3000 C) Supplies Expense of $2000 D) Accounts Payable of $1500

Jackson Discount Service Company had a balance of $7000 in its Supplies account and a zero balance in Supplies Expense at December 31 (prior to adjustment).A physical count of the supplies at that date determined that supplies with a cost of $1300 were on hand.If the following tabular analysis is used Jackson Company will: $\begin{array}{llcc} \underline{\text { Assets } } &= & \underline{\text { Liabilities }} &+ \underline{ \text { Stockholders' Equity} } \end{array}$ $\begin{array}{c} \begin{array}{l} \\ \underline{\text { Supplies }}=\\ \end{array} \begin{array}{c} \text {common}\\ \underline{\text {Stock}}\\ \end{array} \begin{array}{l} \\ \underline{\text {Revenue }} -\\ \end{array} \begin{array}{lll} \\ \underline{\text {Expense}} - \\ \end{array} \begin{array}{lll} \\ \underline{\text { Div. }}\\ \end{array} \end{array}$

A) Increase the Supplies account balance by $1300 B) Increase the Supplies Expense account balance by $1300 C) Decrease the Supplies account balance by $5700 D) Decrease the Supplies Expense account balance by $5700 A) Increase the Supplies account balance by $1300 B) Increase the Supplies Expense account balance by $1300 C) Decrease the Supplies account balance by $5700 D) Decrease the Supplies Expense account balance by $5700

Murphy Tri-State Interiors Company's accounting records included the following analysis: $\begin{array}{llcc} \underline{\text { Assets } } &= & \underline{\text { Liabilities }} &+ \underline{ \text { Stockholders' Equity} } \end{array}$ $\begin{array}{c} \begin{array}{lll} \\ \\ \text {Bal.}\\ \hline \text {Dec. 31}\\ \hline \text {Adj. Bal.}\\ \hline \end{array} \begin{array}{l} \\ \underline{\text { Supplies }}=\\ 8,500 \\ \hline-7,500 \\ \hline 1,000\\ \hline \end{array} \begin{array}{c} \text {common}\\ \underline{\text {Stock}}\\ \\ \hline\\ \hline\\ \hline \end{array} \begin{array}{l} \\ \underline{\text {Revenue }} -\\ \\ \hline\\ \hline\\ \hline \end{array} \begin{array}{lll} \\ \underline{\text {Expense}} - \\ -0 \\ \hline -7,500 \\ \hline -7,500 \\ \hline \end{array} \begin{array}{lll} \\ \underline{\text { Div. }}\\ \\ \hline\\ \hline\\ \hline \end{array} \end{array}$ What transaction does this tabular analysis show?

A) The purchase of supplies for $8500 B) An adjusting entry to expense supplies used of $7500 C) An adjusting entry to decrease the Supplies account balance for supplies used of $1000 D) The purchase of supplies for $7500 A) The purchase of supplies for $8500 B) An adjusting entry to expense supplies used of $7500 C) An adjusting entry to decrease the Supplies account balance for supplies used of $1000 D) The purchase of supplies for $7500

Exam 4: Accrual Accounting Concepts

Given the following adjusted tabular summary amounts: Cash \ 1,662 Accounts receivable 2,098 Inventory 3,124 Prepaid rent 86 Equipment 300 Accumulated depreciation-equipment 52 Accounts payable 82 Unearned service revenue 122 Common stock 206 Retained earnings 6,610 Service revenue 368 Interest revenue 56 Salaries and wages expense 160 Travel expense 66 Net income for the year is:

(Multiple Choice)

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(85)

Question 181

Adjustments for unearned revenue:

(Multiple Choice)

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Question 182

If a company fails to make an adjustment to record supplies expense then:

(Multiple Choice)

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Question 183

A customer paid $60000 to Foley Marketing on December 30 2018 to perform services from January 1 2019 through December 31 2022.If Foley fails to record the revenue recognized would be understated by each year.

(Multiple Choice)

4.8/5

(82)

Question 184

Wang Company had the following transactions during 2022: Sales of $10800 on account Collected $4800 for services to be performed in 2023 Paid $2600 cash in salaries Purchased airline tickets for $600 in December for a trip to take place in 2023 What is Wang's 2022 net income using cash basis accounting?

(Multiple Choice)

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Question 185

Depreciation is the process of:

(Multiple Choice)

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Question 186

Why was Apple required to spread their iPhone revenues over a two-year period?

(Multiple Choice)

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Question 187

A law firm received $2000 cash for legal services to be rendered in the future.The full amount increased the liability account Unearned Service Revenue.If the legal services have been rendered at the end of the accounting period and no adjustment is made this would cause:

(Multiple Choice)

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Question 188

An adjustment made to record accrued interest on a note receivable due next year consists of a(n):

(Multiple Choice)

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Question 189

Walton Company collected $14400 in September of 2022 for 4 months of service which would take place from October of 2022 through January of 2023.The revenue reported from this transaction during 2022 would be:

(Multiple Choice)

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(92)

Question 190

Harrison Tool Company purchased supplies on account during the month of December for $3000.The bill will be paid on January 7.At the end of the month the company's records included the following tabular analysis: = + Bal. Dec. 31 Adj. Bal. = 3,500 -2,000 1,500 Accounts 3,000 common - Supplies - -0 -2,000 -2,000 Harrison Company's financial statements will report:

(Multiple Choice)

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(70)

Question 191

Jackson Discount Service Company had a balance of $7000 in its Supplies account and a zero balance in Supplies Expense at December 31 (prior to adjustment).A physical count of the supplies at that date determined that supplies with a cost of $1300 were on hand.If the following tabular analysis is used Jackson Company will: = + = common - -

(Multiple Choice)

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(90)

Question 192

Murphy Tri-State Interiors Company's accounting records included the following analysis: = + Bal. Dec. 31 Adj. Bal. = 8,500 -7,500 1,000 common - - -0 -7,500 -7,500 What transaction does this tabular analysis show?

(Multiple Choice)

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(75)

Question 193

Adjustments would not be necessary if financial statements were prepared to reflect net income from:

(Multiple Choice)

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Question 194

At December 31 2022 before any year-end adjustments Janus Company's Prepaid Insurance account had a balance of $4200.It was determined that $1800 of the Prepaid Insurance had expired.The adjusted balance for Prepaid Insurance for the year would be:

(Multiple Choice)

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Question 195

Fleet Services Company purchased equipment for $12000 on January 1 2022.The company expects to use the equipment for 5 years.It has no salvage value.What balance would be reported on the December 31 2022 balance sheet for Accumulated Depreciation?

(Multiple Choice)

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(73)

Question 196

On April 1 2022 nPropel Corporation paid $48000 cash for equipment that will be used in business operations.The equipment will be used for four years.nPropel records depreciation expense of $48000 for the calendar year ending December 31 2022.Which accounting principle has been violated?

(Multiple Choice)

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(81)

Question 197

A gift shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season.The note is signed on November 1 in the amount of $50000 with annual interest of 6%.What is the adjustment to be made on December 31 for the interest expense accrued to that date if no adjustments have been made previously for the interest?

(Multiple Choice)

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Question 198

The periodicity assumption is often referred to as the expense recognition principle.

(True/False)

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Question 199

The expense recognition principle matches:

(Multiple Choice)

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Question 200

Adjustments for unearned revenue:

If a company fails to make an adjustment to record supplies expense then:

A customer paid $60000 to Foley Marketing on December 30 2018 to perform services from January 1 2019 through December 31 2022.If Foley fails to record the revenue recognized would be understated by each year.

Depreciation is the process of:

Why was Apple required to spread their iPhone revenues over a two-year period?

A law firm received $2000 cash for legal services to be rendered in the future.The full amount increased the liability account Unearned Service Revenue.If the legal services have been rendered at the end of the accounting period and no adjustment is made this would cause:

An adjustment made to record accrued interest on a note receivable due next year consists of a(n):

Walton Company collected $14400 in September of 2022 for 4 months of service which would take place from October of 2022 through January of 2023.The revenue reported from this transaction during 2022 would be:

Murphy Tri-State Interiors Company's accounting records included the following analysis: = + Bal. Dec. 31 Adj. Bal. = 8,500 -7,500 1,000 common - - -0 -7,500 -7,500 What transaction does this tabular analysis show?

Adjustments would not be necessary if financial statements were prepared to reflect net income from:

At December 31 2022 before any year-end adjustments Janus Company's Prepaid Insurance account had a balance of $4200.It was determined that $1800 of the Prepaid Insurance had expired.The adjusted balance for Prepaid Insurance for the year would be:

Fleet Services Company purchased equipment for $12000 on January 1 2022.The company expects to use the equipment for 5 years.It has no salvage value.What balance would be reported on the December 31 2022 balance sheet for Accumulated Depreciation?

On April 1 2022 nPropel Corporation paid $48000 cash for equipment that will be used in business operations.The equipment will be used for four years.nPropel records depreciation expense of $48000 for the calendar year ending December 31 2022.Which accounting principle has been violated?

The periodicity assumption is often referred to as the expense recognition principle.

The expense recognition principle matches:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

Exam 4: Accrual Accounting Concepts

Adjustments for unearned revenue:

If a company fails to make an adjustment to record supplies expense then:

A customer paid $60000 to Foley Marketing on December 30 2018 to perform services from January 1 2019 through December 31 2022.If Foley fails to record the revenue recognized ________ would be understated by ________ each year.

Depreciation is the process of:

Why was Apple required to spread their iPhone revenues over a two-year period?

A law firm received $2000 cash for legal services to be rendered in the future.The full amount increased the liability account Unearned Service Revenue.If the legal services have been rendered at the end of the accounting period and no adjustment is made this would cause:

An adjustment made to record accrued interest on a note receivable due next year consists of a(n):

Walton Company collected $14400 in September of 2022 for 4 months of service which would take place from October of 2022 through January of 2023.The revenue reported from this transaction during 2022 would be:

Murphy Tri-State Interiors Company's accounting records included the following analysis: = + Bal. Dec. 31 Adj. Bal. = 8,500 -7,500 1,000 common - - -0 -7,500 -7,500 What transaction does this tabular analysis show?

Adjustments would not be necessary if financial statements were prepared to reflect net income from:

At December 31 2022 before any year-end adjustments Janus Company's Prepaid Insurance account had a balance of $4200.It was determined that $1800 of the Prepaid Insurance had expired.The adjusted balance for Prepaid Insurance for the year would be:

Fleet Services Company purchased equipment for $12000 on January 1 2022.The company expects to use the equipment for 5 years.It has no salvage value.What balance would be reported on the December 31 2022 balance sheet for Accumulated Depreciation?

On April 1 2022 nPropel Corporation paid $48000 cash for equipment that will be used in business operations.The equipment will be used for four years.nPropel records depreciation expense of $48000 for the calendar year ending December 31 2022.Which accounting principle has been violated?

The periodicity assumption is often referred to as the expense recognition principle.

The expense recognition principle matches:

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

A customer paid $60000 to Foley Marketing on December 30 2018 to perform services from January 1 2019 through December 31 2022.If Foley fails to record the revenue recognized would be understated by each year.