Exam 3: Adjusting the Accounts

Use this information pertaining to Tucson Company to answer the following question. 1.The corporation's Supplies account showed a beginning debit balance of $400 and supplies purchased of $1,600.There were $600 of supplies on hand at year end. 2)Depreciation on a building is estimated to be $10,000. 3)A one-year insurance policy was purchased for $4,800.Five months have passed since the purchase. 4)Accrued interest on a note receivable amounted to $200. 5)The company received a $3,600 advance payment during the year on services to be performed.By the end of the year,one-third of the services had been performed. The adjusting entry to record the accrued interest on the note is

Which of the following accounts would not need to be adjusted at year end?

Accrual accounting recognizes revenues and expenses at the point that cash changes hands.

Which of the following transactions results in an increase in revenues?

Which of the following accounts would be found on the credit side of the adjusted trial balance?

If an adjusting entry is not made at the end of an accounting period to remove the earned revenue from the Unearned Revenue account,

Which of the following is not an application of accrual accounting?

During the performance of the steps in the accounting cycle,the trial balance and the adjusted trial balance are prepared at two key points.Using specific names where applicable,discuss the time of preparation and the purpose served by both of these trial balances.

In July,a company pays three years' insurance in advance.The December 31 adjusting entry is

When there is no direct connection between revenues and costs,the costs are systematically allocated among the periods benefited.

A net loss results in a decrease in

Which of the following is an application of accrual accounting?

Distinguish between a deferral and an accrual.

The carrying value of a depreciable asset purchased 3 years ago equals

All decreases in owner's equity are a result of expenses.

An adjusted trial balance must be prepared before the adjusting entries can be recorded.

When an adjusting entry is made debiting an expense account,the credit can be made to any of the following accounts except

Which of the following accounts would be found on the debit side of the adjusted trial balance?