Question 1

On a worksheet, the adjusted balance of the Supplies account is extended to:

Accepted Answer

A) the Income Statement Debit column. 
B) the Balance Sheet Credit column. 
C) the Income Statement Credit column. 
D) the Balance Sheet Debit column. 
A) the Income Statement Debit column. 
B) the Balance Sheet Credit column. 
C) the Income Statement Credit column. 
D) the Balance Sheet Debit column. D

Question 2

On November 1, 2019, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space. The correct adjusting entry on December 31, 2019, to show the amount of rent that had expired would include:

Accepted Answer

A) debit Rent Expense $4,800; credit Prepaid Rent $4,800 
B) debit Rent Expense $800; credit Prepaid Rent $800 
C) debit Rent Expense $400; credit Prepaid Rent $400 
D) debit Prepaid Rent $4,000; credit Rent Expense $4,000 
A) debit Rent Expense $4,800; credit Prepaid Rent $4,800 
B) debit Rent Expense $800; credit Prepaid Rent $800 
C) debit Rent Expense $400; credit Prepaid Rent $400 
D) debit Prepaid Rent $4,000; credit Rent Expense $4,000 B

Question 3

On a balance sheet, Accumulated Depreciation-Equipment is reported:

Accepted Answer

A) as a contra-asset on the Balance Sheet. 
B) as a liability on the Income Statement. 
C) as an expense on the Income Statement. 
D) as owner's equity on the Balance Sheet. 
A) as a contra-asset on the Balance Sheet. 
B) as a liability on the Income Statement. 
C) as an expense on the Income Statement. 
D) as owner's equity on the Balance Sheet. A

Question 4

On January 1, 2019, Johnson Consulting purchased a truck for $18,000. The truck is expected to last 60 months and have no salvage value. Calculate the book value of the truck on December 31, 2020.

Accepted Answer

A) $3,600 
B) $14,400 
C) $7,200 
D) $10,800 
A) $3,600 
B) $14,400 
C) $7,200 
D) $10,800

Question 5

On July 1, Sidney Consulting Services paid $18,000 for 12 months of advance rent on its office building. Select the adjusting entry made on December 31, to record the amount of rent that had expired during the year.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 6

Adjusting entries can be journalized:

Accepted Answer

A) only once per accounting quarter. 
B) only once a month. 
C) as often as necessary. 
D) only once a year at the end of the accounting year. 
A) only once per accounting quarter. 
B) only once a month. 
C) as often as necessary. 
D) only once a year at the end of the accounting year.

Question 7

If adjustments are entered on a worksheet, it is not necessary to record them in the journal or the ledger.

Accepted Answer

A) True 
 B)False

Question 8

The account credited in the adjusting entry made to record the expiration of a portion of prepaid rent is the ________ account.

Accepted Answer

The answer of The account credited in the adjusting entry...

Question 9

On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ________ Debit column.

Accepted Answer

The answer of On a worksheet, the adjusted balance of...

Question 10

Read the description of following adjustments that are required at the end of the accounting period for Hubbard Repair Services. Determine the account and amount to be debited and the account and amount to be credited.
A. Prepaid rent for the year on April 1, 2019. Rent expired during the month of April 2019, $3,500. Record the adjustment on April 30, 2019.
B. Purchased supplies for $2,000 on April 1, 2019. Inventory of supplies was $1,600 on April 30, 2019. Record the adjustment for the amount of the supplies that were used during the month of April 2019.
C. Depreciation is computed using the straight-line method. Equipment purchased on April 1, 2019, for $18,000 has an estimated useful life of 5 years with no salvage value. Record the adjustment on April 30, 2019.
D. Signed a 6-month contract for $2,400 of prepaid advertising on April 1, 2019. Record the adjustment for the amount of the contract that expired during the month of April 2019.

Accepted Answer

A. Debit Rent Expense, $3,500; credit Pr

Question 11

Read the description of following adjustments that are required at the end of the accounting period for Anise's Repair Services. Record the necessary adjusting entries required at the end of January on page 2 of a general journal. Omit the descriptions.
A. Prepaid rent for the year on January 1, 2019. Rent expired during the month of January 2019,
$1,600.
B. Purchased supplies for $4,000 on January 1, 2019. Inventory of supplies was $1,200 on January 31, 2019.
C. Depreciation is computed using the straight-line method. Equipment purchased on January 1, 2019, for $3,000 has an estimated useful life of 5 years with no salvage value.
D. Signed a 3-month contract for $450 of prepaid advertising on January 1, 2019.

Accepted Answer

The answer of Read the description of following adjustments that...

Question 12

Which of the following statements is not correct?

Accepted Answer

A) If an account has a debit balance in the Trial Balance section of the worksheet and there is a credit entry in the Adjustments section, the credit amount is added when computing the balance to be shown in the Adjusted Trial Balance section of the worksheet. 
B) Net loss is recorded on the worksheet in the Income Statement Credit column and the Balance Sheet Debit column. 
C) Net income is recorded on the worksheet in the Income Statement Debit column and the Balance Sheet Credit column. 
D) The difference between the total of the Income Statement Debit column and the total of the Income Statement Credit column of the worksheet represents either net income or net loss. 
A) If an account has a debit balance in the Trial Balance section of the worksheet and there is a credit entry in the Adjustments section, the credit amount is added when computing the balance to be shown in the Adjusted Trial Balance section of the worksheet. 
B) Net loss is recorded on the worksheet in the Income Statement Credit column and the Balance Sheet Debit column. 
C) Net income is recorded on the worksheet in the Income Statement Debit column and the Balance Sheet Credit column. 
D) The difference between the total of the Income Statement Debit column and the total of the Income Statement Credit column of the worksheet represents either net income or net loss.

Question 13

The process of allocating the cost of a long-term asset as an expense of operations during the asset's expected useful life is known as ________.

Accepted Answer

The answer of The process of allocating the cost of...

Question 14

The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2019, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Accepted Answer

None

Question 15

Adjusting Entries are:

Accepted Answer

A) updating entries for previously unrecorded expenses or revenues. 
B) corrections of errors. 
C) not required. 
D) will always affect cash. 
A) updating entries for previously unrecorded expenses or revenues. 
B) corrections of errors. 
C) not required. 
D) will always affect cash.

Question 16

Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:

Accepted Answer

A) $12. 
B) $600. 
C) $60. 
D) $720. 
A) $12. 
B) $600. 
C) $60. 
D) $720.

Question 17

On December 31, Treats Catering Inc.'s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet. Select the adjusting entry made on December 31, to record the amount of supplies that had been used during the year.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 18

Which of the following need not be completed separately if a worksheet is prepared?

Accepted Answer

A) a trial balance 
B) a balance sheet 
C) an income statement 
D) a statement of owner's equity 
A) a trial balance 
B) a balance sheet 
C) an income statement 
D) a statement of owner's equity

Question 19

Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

Accepted Answer

A) True 
 B)False

Question 20

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents 12 months rent paid on November 1. The adjusting entry required on December 31 to show the amount of rent that had expired is:

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Exam 5: Adjustments and the Worksheet

On a worksheet, the adjusted balance of the Supplies account is extended to:

On November 1, 2019, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space. The correct adjusting entry on December 31, 2019, to show the amount of rent that had expired would include:

On a balance sheet, Accumulated Depreciation-Equipment is reported:

On January 1, 2019, Johnson Consulting purchased a truck for $18,000. The truck is expected to last 60 months and have no salvage value. Calculate the book value of the truck on December 31, 2020.

On July 1, Sidney Consulting Services paid $18,000 for 12 months of advance rent on its office building. Select the adjusting entry made on December 31, to record the amount of rent that had expired during the year.

Adjusting entries can be journalized:

If adjustments are entered on a worksheet, it is not necessary to record them in the journal or the ledger.

The account credited in the adjusting entry made to record the expiration of a portion of prepaid rent is the ________ account.

On a worksheet, the adjusted balance of Depreciation Expense is extended from the Adjusted Trial Balance Debit column to the ________ Debit column.

Which of the following statements is not correct?

The process of allocating the cost of a long-term asset as an expense of operations during the asset's expected useful life is known as ________.

The partial worksheet for the Lorado Insurance Agency for the month ended October 31, 2019, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Adjusting Entries are:

Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:

Which of the following need not be completed separately if a worksheet is prepared?

Prepaid expenses, such as prepaid rent and prepaid insurance, represent assets for a business until they are used.

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents 12 months rent paid on November 1. The adjusting entry required on December 31 to show the amount of rent that had expired is:

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

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

Accruals, Deferrals, and the Worksheet

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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