Based on the adjusted account balances below what is the total of the asset side of the adjusted tabular summary? $\begin{array} { l r l r } \text { Service revenue } & \$ 5,300 & \text { Equipment } & \$ 7,400 \\ \text { Cash } & 2,525 & \text { Prepaid insurance } & 1,225 \\ \text { Unearned service rev. } & 5,320 & \text { Depreciation expense } & 640 \\ \text { Salaries and wages expense } & 1,050 & \text { Accum. depreciation } & 1,280 \\ \text { Common stock } & 390 & \text { Retained earnings } & 550 \end{array}$

A) $11150 B) $9870 C) $11560 D) $10510 A) $11150 B) $9870 C) $11560 D) $10510

Hancock Bicycle Company purchased supplies on account during the month of December.The company's records included the following tabular analysis prior to adjustment: $\begin{array}{llcc} \underline{\text { Assets } } &= & \underline{\text { Liabilities }} &+ \underline{ \text { Stockholders' Equity} } \end{array}$ $\begin{array}{c} \begin{array}{lll} \\ \\ \text {Bal.}\\ \hline \end{array} \begin{array}{l} \\ \underline{\text { Supplies }}=\\ 2,300 \\ \hline \end{array} \begin{array}{c} \text {Accounts}\\ \underline{\text { Payable }}\\ 2,000\\ \hline \end{array} \begin{array}{c} \text {common}\\ \underline{\text {Stock}}+\\ \\ \hline \end{array} \begin{array}{l} \\ \underline{\text {Revenue }} -\\ \\ \hline \end{array} \begin{array}{lll} \text { Supplies }\\ \underline{\text {Expense}} - \\ \\ \hline \end{array} \begin{array}{lll} \\ \underline{\text { Div. }}\\ \\ \hline \end{array} \end{array}$ If the company has supplies on hand of $500 at the end of the month what entry would be made to the analysis?

A) Decrease Accounts Payable by $1500 and increase Supplies Expense by $1500 B) Increase Supplies Expense by $1800 and decrease Supplies by $1800 C) Decrease Supplies Expense of $2000 and decrease Supplies by $2000 D) Increase Supplies Expense by $500 and decrease Supplies by $500 A) Decrease Accounts Payable by $1500 and increase Supplies Expense by $1500 B) Increase Supplies Expense by $1800 and decrease Supplies by $1800 C) Decrease Supplies Expense of $2000 and decrease Supplies by $2000 D) Increase Supplies Expense by $500 and decrease Supplies by $500

Given the following adjusted tabular summary amounts: $\begin{array} { l r } \text { Cash } & \$ 831 \\ \text { Accounts receivable } & 1,049 \\ \text { Inventory } & 1,562 \\ \text { Prepaid rent } & 43 \\ \text { Equipment } & 150 \\ \text { Accumulated depreciation-equipment } & 26 \\ \text { Accounts payable } & 41 \\ \text { Unearned service revenue } & 86 \\ \text { Common stock } & 103 \\ \text { Retained earnings } & 3,305 \\ \text { Service revenue } & 159 \\ \text { Interest revenue } & 28 \\ \text { Salaries and wages expense } & 80 \\ \text { Travel expense } & 33 \end{array}$ What is the amount of total assets on the balance sheet?

A) $3635 B) $3609 C) $3748 D) $3722 A) $3635 B) $3609 C) $3748 D) $3722

Exam 4: Accrual Accounting Concepts

The policy at Adler Corporation is to expense all office supplies at the time of purchase.On the last day of the accounting period there are $1100 of unused office supplies on hand and the balance of supplies expense is $3500.What should the accountant do?

(Multiple Choice)

4.8/5

(84)

Question 81

Accounts often need to be adjusted because:

(Multiple Choice)

4.9/5

(92)

Question 82

The following accounts show balances on the adjusted tabular summary.Which of these account balances will not appear the same on the balance sheet?

(Multiple Choice)

4.9/5

(98)

Question 83

Muldoon Advertising has an opening balance in its supplies account of $2400 and purchases $3000 of supplies during the year.A year-end physical count shows $2800 in supplies inventory.Which is the appropriate adjustment at year end?

(Multiple Choice)

4.8/5

(78)

Question 84

At December 31 2022 before any year-end adjustments Dallis Company's Prepaid Insurance account had a balance of $5800.It was determined that $2600 of the Prepaid Insurance had expired.The adjusted balance for Insurance Expense for the year would be:

(Multiple Choice)

4.9/5

(83)

Question 85

Which of the following would not result in unearned revenue?

(Multiple Choice)

4.8/5

(79)

Question 86

Based on the adjusted account balances below what is the total of the asset side of the adjusted tabular summary? Service revenue \ 5,300 Equipment \ 7,400 Cash 2,525 Prepaid insurance 1,225 Unearned service rev. 5,320 Depreciation expense 640 Salaries and wages expense 1,050 Accum. depreciation 1,280 Common stock 390 Retained earnings 550

(Multiple Choice)

4.7/5

(83)

Question 87

On November 1 2021 Weller Industries which uses a calendar year as its fiscal year signs a $30000 7% six-month note payable.The transaction to record the payment of the note and entire interest on May 1 2022?

(Multiple Choice)

4.8/5

(71)

Question 88

Ye Olde Christmas shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season.The note is signed on October 1 in the amount of $30000 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)

4.8/5

(69)

Question 89

Hancock Bicycle Company purchased supplies on account during the month of December.The company's records included the following tabular analysis prior to adjustment: = + Bal. = 2,300 Accounts 2,000 common + - Supplies - If the company has supplies on hand of $500 at the end of the month what entry would be made to the analysis?

(Multiple Choice)

4.8/5

(92)

Question 90

An adjustment always involves a balance sheet account and an income statement account.

(True/False)

4.9/5

(71)

Question 91

Which principle dictates that efforts (expenses) be recorded with accomplishments (revenues)?

(Multiple Choice)

4.8/5

(73)

Question 92

Given the following adjusted tabular summary amounts: Cash \ 831 Accounts receivable 1,049 Inventory 1,562 Prepaid rent 43 Equipment 150 Accumulated depreciation-equipment 26 Accounts payable 41 Unearned service revenue 86 Common stock 103 Retained earnings 3,305 Service revenue 159 Interest revenue 28 Salaries and wages expense 80 Travel expense 33 What is the amount of total assets on the balance sheet?

(Multiple Choice)

5.0/5

(77)

Question 93

An adjusted tabular summary must be prepared before the adjustments can be recorded.

(True/False)

4.8/5

(74)

Question 94

Adjustments are required:

(Multiple Choice)

4.9/5

(81)

Question 95

An adjusted tabular summary:

(Multiple Choice)

4.9/5

(76)

Question 96

Using accrual accounting expenses are recorded and reported only:

(Multiple Choice)

4.9/5

(82)

Question 97

A new accountant working for Metcalf Company records $800 Depreciation Expense as an increase to Depreciation Expense and a decrease to Cash.The effect of this is to:

(Multiple Choice)

4.7/5

(84)

Question 98

On January 1 2022 M.Johanson Company purchased equipment for $54000.The company is depreciating the equipment at the rate of $750 per month.The book value of the equipment at December 31 2022 is:

(Multiple Choice)

4.8/5

(82)

Question 99

Which of the following is an example of a deferral adjustment?

(Multiple Choice)

4.9/5

(84)

Question 100

The policy at Adler Corporation is to expense all office supplies at the time of purchase.On the last day of the accounting period there are $1100 of unused office supplies on hand and the balance of supplies expense is $3500.What should the accountant do?

Accounts often need to be adjusted because:

The following accounts show balances on the adjusted tabular summary.Which of these account balances will not appear the same on the balance sheet?

Muldoon Advertising has an opening balance in its supplies account of $2400 and purchases $3000 of supplies during the year.A year-end physical count shows $2800 in supplies inventory.Which is the appropriate adjustment at year end?

At December 31 2022 before any year-end adjustments Dallis Company's Prepaid Insurance account had a balance of $5800.It was determined that $2600 of the Prepaid Insurance had expired.The adjusted balance for Insurance Expense for the year would be:

Which of the following would not result in unearned revenue?

On November 1 2021 Weller Industries which uses a calendar year as its fiscal year signs a $30000 7% six-month note payable.The transaction to record the payment of the note and entire interest on May 1 2022?

An adjustment always involves a balance sheet account and an income statement account.

Which principle dictates that efforts (expenses) be recorded with accomplishments (revenues)?

An adjusted tabular summary must be prepared before the adjustments can be recorded.

Adjustments are required:

An adjusted tabular summary:

Using accrual accounting expenses are recorded and reported only:

A new accountant working for Metcalf Company records $800 Depreciation Expense as an increase to Depreciation Expense and a decrease to Cash.The effect of this is to:

On January 1 2022 M.Johanson Company purchased equipment for $54000.The company is depreciating the equipment at the rate of $750 per month.The book value of the equipment at December 31 2022 is:

Which of the following is an example of a deferral adjustment?

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