Match between columns Premises: Income received before it is earned Income that has been earned but not yet received and recorded Expenses that are paid for and recorded before they are used, such as rent or insurance Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated) Another term for prepaid expenses A system of accounting by which all revenues and expenses are matched and reported on financial statements for the applicable period, regardless of when the cash related to the transaction is received or paid The difference between the debit and credit columns of the Income Statement and the debit and credit columns of the Balance Sheet on the worksheet. A form used to list the volume and type of goods a firm has in stock Another term for unearned income The amounts entered in the Adjusted Trial Balance section of the worksheet

The Answer of Prepaid expenses and Accrued income and Net is...

Exam 12: Accruals, Deferrals, and the Worksheet

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During December, the firm received $12,000 in fees in advance and properly recorded the amount as Unearned Fees. An analysis shows that $4,000 applies to services provided in December.

Free

(Essay)

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Question 1

Correct Answer:

Verified

Debit Unearned Fees, $4,000; credit Fees Earned, $4,000

On January 1, 2019, a firm purchased machinery for $19,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 8-year useful life, and a salvage value of $2,000, is

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

Match the description with the accounting terms.

Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated)

Accrual basis

A form used to list the volume and type of goods a firm has in stock

Accrued expenses

Another term for unearned income

Accrued income

Correct Answer:

Verified

Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated)

Accrual basis

A form used to list the volume and type of goods a firm has in stock

Accrued expenses

Another term for unearned income

Accrued income

Expenses that are paid for and recorded before they are used, such as rent or insurance

Deferred expenses

The amounts entered in the Adjusted Trial Balance section of the worksheet

Deferred income

Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records

Inventory sheet

Another term for prepaid expenses

Net income or Net loss

A system of accounting by which all revenues and expenses are matched and reported on financial statements for the applicable period, regardless of when the cash related to the transaction is received or paid

Prepaid expenses

Income that has been earned but not yet received and recorded

Property, plant, and equipment

The difference between the debit and credit columns of the Income Statement and the debit and credit columns of the Balance Sheet on the worksheet.

Unearned income

Income received before it is earned

Updated account balances

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Question 3

Correct Answer:

Verified

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. The Supplies account has a balance of $2,500. On December 31, 2019, an inventory of supplies showed that items costing $625 were on hand.

(Short Answer)

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(65)

Question 4

Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a

(Multiple Choice)

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Question 5

Depreciation Expense has a debit balance in the Trial Balance section of the worksheet of $2,200 and a debit of $200 in the adjustments section of the worksheet, the balance of Depreciation Expense in the Adjusted Trial Balance section of the worksheet is a

(Multiple Choice)

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Question 6

Hugh Morris Company pays weekly wages of $15,000 every Friday for a five day week ending on that day. If the last day of the year is on Tuesday, the adjusting entry to record the accrued wages is:

(Multiple Choice)

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Question 7

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2019, the firm owed wages totaling $4,300.

(Short Answer)

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Question 8

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During December, the firm received $6,000 in fees in advance and properly recorded the amount as Unearned Fees. An analysis shows that $2,000 applies to services provided in December.

(Essay)

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Question 9

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the________ basis of accounting.

(Short Answer)

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Question 10

On July 31, 2019, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. Prepare the Trial Balance, Adjustments, and Adjusted Trial Balance sections of a worksheet. ACCOUNT BALANCE ACCOUNT BALANCE Cash \ 13,185. Interest Payable - Accounts Receivable 9,500. Unearned Income \ 600. $On July 31, 2019, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. Prepare the Trial Balance, Adjustments, and Adjusted Trial Balance sections of a worksheet. \begin{array}{|l|l|l|l|} \hline {\text { ACCOUNT }} & \text { BALANCE } & \text { ACCOUNT } & \text { BALANCE } \\ \hline \text { Cash } & \$ 13,185 \mathrm{Dr} . & \text { Interest Payable } & - \\ \hline \text { Accounts Receivable } & 9,500 \mathrm{Dr} . & \text { Unearned Income } & \$ 600 \mathrm{Cr} . \\ \hline \end{array} Adjustments: (a)On July 31, an inventory of the supplies showed that items costing $250 were on hand. (b)On July 1, the firm paid $3,000 in advance for 6 months rent. (c)On July 1, the firm paid $240 interest in advance on a 3-month note that it issued to the bank. (d)On July 2, the firm purchased office equipment for $14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of $1,000. (e)On July 1, the firm issued a 3-month, 9 percent note for $4,000. (f)During July, the firm received $600 from customers in advance of providing services. An Analyze of the firm's records shows that the full amount applies to services provided in July. DAKOTA CONSULTING Worksheet Month Ended July 31, 2019 DAKOTA CONSULTING Worksheet, continued (through Adjusted Trial Balance Column)Month Ended July 31, 2019 \begin{array} { | l | l | l | } \hline 20 & \quad\quad\quad& \quad\quad\quad\\ \hline 21 & & \\ \hline 22 & & \\ \hline \end{array}$ Adjustments: (a)On July 31, an inventory of the supplies showed that items costing $250 were on hand. (b)On July 1, the firm paid $3,000 in advance for 6 months rent. (c)On July 1, the firm paid $240 interest in advance on a 3-month note that it issued to the bank. (d)On July 2, the firm purchased office equipment for $14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of $1,000. (e)On July 1, the firm issued a 3-month, 9 percent note for $4,000. (f)During July, the firm received $600 from customers in advance of providing services. An Analyze of the firm's records shows that the full amount applies to services provided in July. DAKOTA CONSULTING Worksheet Month Ended July 31, 2019 $On July 31, 2019, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. Prepare the Trial Balance, Adjustments, and Adjusted Trial Balance sections of a worksheet. \begin{array}{|l|l|l|l|} \hline {\text { ACCOUNT }} & \text { BALANCE } & \text { ACCOUNT } & \text { BALANCE } \\ \hline \text { Cash } & \$ 13,185 \mathrm{Dr} . & \text { Interest Payable } & - \\ \hline \text { Accounts Receivable } & 9,500 \mathrm{Dr} . & \text { Unearned Income } & \$ 600 \mathrm{Cr} . \\ \hline \end{array} Adjustments: (a)On July 31, an inventory of the supplies showed that items costing $250 were on hand. (b)On July 1, the firm paid $3,000 in advance for 6 months rent. (c)On July 1, the firm paid $240 interest in advance on a 3-month note that it issued to the bank. (d)On July 2, the firm purchased office equipment for $14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of $1,000. (e)On July 1, the firm issued a 3-month, 9 percent note for $4,000. (f)During July, the firm received $600 from customers in advance of providing services. An Analyze of the firm's records shows that the full amount applies to services provided in July. DAKOTA CONSULTING Worksheet Month Ended July 31, 2019 DAKOTA CONSULTING Worksheet, continued (through Adjusted Trial Balance Column)Month Ended July 31, 2019 \begin{array} { | l | l | l | } \hline 20 & \quad\quad\quad& \quad\quad\quad\\ \hline 21 & & \\ \hline 22 & & \\ \hline \end{array}$ $On July 31, 2019, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. Prepare the Trial Balance, Adjustments, and Adjusted Trial Balance sections of a worksheet. \begin{array}{|l|l|l|l|} \hline {\text { ACCOUNT }} & \text { BALANCE } & \text { ACCOUNT } & \text { BALANCE } \\ \hline \text { Cash } & \$ 13,185 \mathrm{Dr} . & \text { Interest Payable } & - \\ \hline \text { Accounts Receivable } & 9,500 \mathrm{Dr} . & \text { Unearned Income } & \$ 600 \mathrm{Cr} . \\ \hline \end{array} Adjustments: (a)On July 31, an inventory of the supplies showed that items costing $250 were on hand. (b)On July 1, the firm paid $3,000 in advance for 6 months rent. (c)On July 1, the firm paid $240 interest in advance on a 3-month note that it issued to the bank. (d)On July 2, the firm purchased office equipment for $14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of $1,000. (e)On July 1, the firm issued a 3-month, 9 percent note for $4,000. (f)During July, the firm received $600 from customers in advance of providing services. An Analyze of the firm's records shows that the full amount applies to services provided in July. DAKOTA CONSULTING Worksheet Month Ended July 31, 2019 DAKOTA CONSULTING Worksheet, continued (through Adjusted Trial Balance Column)Month Ended July 31, 2019 \begin{array} { | l | l | l | } \hline 20 & \quad\quad\quad& \quad\quad\quad\\ \hline 21 & & \\ \hline 22 & & \\ \hline \end{array}$ $On July 31, 2019, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. Prepare the Trial Balance, Adjustments, and Adjusted Trial Balance sections of a worksheet. \begin{array}{|l|l|l|l|} \hline {\text { ACCOUNT }} & \text { BALANCE } & \text { ACCOUNT } & \text { BALANCE } \\ \hline \text { Cash } & \$ 13,185 \mathrm{Dr} . & \text { Interest Payable } & - \\ \hline \text { Accounts Receivable } & 9,500 \mathrm{Dr} . & \text { Unearned Income } & \$ 600 \mathrm{Cr} . \\ \hline \end{array} Adjustments: (a)On July 31, an inventory of the supplies showed that items costing $250 were on hand. (b)On July 1, the firm paid $3,000 in advance for 6 months rent. (c)On July 1, the firm paid $240 interest in advance on a 3-month note that it issued to the bank. (d)On July 2, the firm purchased office equipment for $14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of $1,000. (e)On July 1, the firm issued a 3-month, 9 percent note for $4,000. (f)During July, the firm received $600 from customers in advance of providing services. An Analyze of the firm's records shows that the full amount applies to services provided in July. DAKOTA CONSULTING Worksheet Month Ended July 31, 2019 DAKOTA CONSULTING Worksheet, continued (through Adjusted Trial Balance Column)Month Ended July 31, 2019 \begin{array} { | l | l | l | } \hline 20 & \quad\quad\quad& \quad\quad\quad\\ \hline 21 & & \\ \hline 22 & & \\ \hline \end{array}$ DAKOTA CONSULTING Worksheet, continued (through Adjusted Trial Balance Column)Month Ended July 31, 2019 $On July 31, 2019, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. Prepare the Trial Balance, Adjustments, and Adjusted Trial Balance sections of a worksheet. \begin{array}{|l|l|l|l|} \hline {\text { ACCOUNT }} & \text { BALANCE } & \text { ACCOUNT } & \text { BALANCE } \\ \hline \text { Cash } & \$ 13,185 \mathrm{Dr} . & \text { Interest Payable } & - \\ \hline \text { Accounts Receivable } & 9,500 \mathrm{Dr} . & \text { Unearned Income } & \$ 600 \mathrm{Cr} . \\ \hline \end{array} Adjustments: (a)On July 31, an inventory of the supplies showed that items costing $250 were on hand. (b)On July 1, the firm paid $3,000 in advance for 6 months rent. (c)On July 1, the firm paid $240 interest in advance on a 3-month note that it issued to the bank. (d)On July 2, the firm purchased office equipment for $14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of $1,000. (e)On July 1, the firm issued a 3-month, 9 percent note for $4,000. (f)During July, the firm received $600 from customers in advance of providing services. An Analyze of the firm's records shows that the full amount applies to services provided in July. DAKOTA CONSULTING Worksheet Month Ended July 31, 2019 DAKOTA CONSULTING Worksheet, continued (through Adjusted Trial Balance Column)Month Ended July 31, 2019 \begin{array} { | l | l | l | } \hline 20 & \quad\quad\quad& \quad\quad\quad\\ \hline 21 & & \\ \hline 22 & & \\ \hline \end{array}$ 20 21 22

(Essay)

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(74)

Question 11

During the year, Spirit Fun had net credit sales of $800,000. Past experience shows that 1.5 percent of the firm's net credit sales will be uncollectible. Determine the adjusting entry needed to recognize the estimated expense for these uncollectible accounts.

(Multiple Choice)

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Question 12

The journal entry to record interest that has been earned but not yet received includes a debit to Interest Receivable and a credit to Interest Income.

(True/False)

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(83)

Question 13

Rose Bush Nursery purchased a delivery truck for $40,000. The truck is expected to have a useful life of 5 years and a residual value of $2,800. The company uses the straight-line method of depreciation. If the truck was purchased on June 1, 2019, what is the amount of depreciation expense for the truck for one full year?

(Multiple Choice)

4.7/5

(79)

Question 14

Match the description with the accounting terms.

Income received before it is earned

Prepaid expenses

Income that has been earned but not yet received and recorded

Accrued income

Expenses that are paid for and recorded before they are used, such as rent or insurance

Net income or Net loss

Correct Answer:

Verified

Income received before it is earned

Income that has been earned but not yet received and recorded

Expenses that are paid for and recorded before they are used, such as rent or insurance

Expense items that relate to the current period but have not yet been paid and do not yet appear in the accounting records

Long-term assets that are used in the operation of a business and that are subject to depreciation (except for land, which is not depreciated)

Another term for prepaid expenses

The difference between the debit and credit columns of the Income Statement and the debit and credit columns of the Balance Sheet on the worksheet.

A form used to list the volume and type of goods a firm has in stock

Another term for unearned income

The amounts entered in the Adjusted Trial Balance section of the worksheet

(Matching)

4.9/5

(77)

Question 15

On Oct 1, 2019, a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance. The adjustment needed on December 31, 2019, to report the amount of insurance that had expired, would be:

(Multiple Choice)

4.7/5

(74)

Question 16

On April 1, 2019, a firm accepted a 6-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is

(Multiple Choice)

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(72)

Question 17

Under a periodic inventory system, the adjustment for merchandise inventory is made in ________ steps.

(Short Answer)

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Question 18

Under the periodic inventory system, the journal entry to record the ending merchandise inventory in the books includes a ________ to the Merchandise Inventory account.

(Short Answer)

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Question 19

If a company uses the periodic inventory system, purchases of merchandise are

(Multiple Choice)

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(73)

Question 20

Showing 1 - 20 of 94

Exam 12: Accruals, Deferrals, and the Worksheet

On January 1, 2019, a firm purchased machinery for $19,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 8-year useful life, and a salvage value of $2,000, is

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. The Supplies account has a balance of $2,500. On December 31, 2019, an inventory of supplies showed that items costing $625 were on hand.

Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a

Depreciation Expense has a debit balance in the Trial Balance section of the worksheet of $2,200 and a debit of $200 in the adjustments section of the worksheet, the balance of Depreciation Expense in the Adjusted Trial Balance section of the worksheet is a

Hugh Morris Company pays weekly wages of $15,000 every Friday for a five day week ending on that day. If the last day of the year is on Tuesday, the adjusting entry to record the accrued wages is:

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2019, the firm owed wages totaling $4,300.

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the________ basis of accounting.

During the year, Spirit Fun had net credit sales of $800,000. Past experience shows that 1.5 percent of the firm's net credit sales will be uncollectible. Determine the adjusting entry needed to recognize the estimated expense for these uncollectible accounts.

The journal entry to record interest that has been earned but not yet received includes a debit to Interest Receivable and a credit to Interest Income.

On Oct 1, 2019, a firm purchased a 1-year insurance policy for $2,400 and paid the full premium in advance. The adjustment needed on December 31, 2019, to report the amount of insurance that had expired, would be:

On April 1, 2019, a firm accepted a 6-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is

Under a periodic inventory system, the adjustment for merchandise inventory is made in ________ steps.

Under the periodic inventory system, the journal entry to record the ending merchandise inventory in the books includes a ________ to the Merchandise Inventory account.

If a company uses the periodic inventory system, purchases of merchandise are

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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