Question 1

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

Question 2

On a balance sheet, Accumulated Depreciation-Equipment is reported

Accepted Answer

A)  as a deduction from the cost of the equipment. 
B)  as a liability. 
C)  as an expense. 
D)  as a deduction from the total of the assets. 
A)  as a deduction from the cost of the equipment. 
B)  as a liability. 
C)  as an expense. 
D)  as a deduction from the total of the assets. A

Question 3

In the Adjusted Trial Balance section of the worksheet the total debits should equal the total credits.

Accepted Answer

A) True 
 B)False  True

Question 4

The balances of the ledger accounts for Buffet Services on September 30, 2013, and the information needed for adjustments are shown below. Prepare the Trial Balance section, record the adjustments, and complete the worksheet.   Adjustment information:
(a) The supplies were purchased on September 1, 2013. An inventory of supplies showed $1,200 on hand on September 30, 2013.
(b) The amount of Prepaid Insurance represents a payment made September 1, 2013, for a six-month insurance policy.
(c) The equipment, purchased September 1, 2013, has an estimated useful life of 5 years with no salvage value. The firm uses the straight-line method of depreciation.

Accepted Answer

The answer of The balances of the ledger accounts for...

Question 5

If equipment has ____________________ value, it can be sold for additional use or for scrap.

Accepted Answer

The answer of If equipment has ____________________ value, it can...

Question 6

An accumulated depreciation account has a normal ____________________ balance.

Accepted Answer

The answer of An accumulated depreciation account has a normal...

Question 7

On the worksheet, the Balance Sheet columns should balance

Accepted Answer

A)  before the net income amount is added to the Balance Sheet Debit column. 
B)  after the net income amount is added to the Balance Sheet Debit column. 
C)  after the net income amount is added to the Balance Sheet Credit column. 
D)  before the net income amount is added to the Balance Sheet Credit column. 
A)  before the net income amount is added to the Balance Sheet Debit column. 
B)  after the net income amount is added to the Balance Sheet Debit column. 
C)  after the net income amount is added to the Balance Sheet Credit column. 
D)  before the net income amount is added to the Balance Sheet Credit column.

Question 8

If a worksheet is prepared at the end of the accounting year,

Accepted Answer

A)  preparation of the financial statements is not required. 
B)  the adjusting entries do not need to be journalized. 
C)  only a balance sheet is required. 
D)  the financial statements are prepared using the worksheet data. 
A)  preparation of the financial statements is not required. 
B)  the adjusting entries do not need to be journalized. 
C)  only a balance sheet is required. 
D)  the financial statements are prepared using the worksheet data.

Question 9

If an adjustment for expired rent is not recorded, the firm's expenses will be overstated.

Accepted Answer

A) True 
 B)False

Question 10

The normal balance of a contra asset account is a debit.

Accepted Answer

A) True 
 B)False

Question 11

If an adjustment is not recorded for supplies used, the firm's assets will be overstated.

Accepted Answer

A) True 
 B)False

Question 12

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

Accepted Answer

A) True 
 B)False

Question 13

Read the description of following adjustments that are required at the end of the accounting period for River Front Repair. Record the necessary adjusting entries on page 2 of a general journal. Omit the descriptions.
A. Prepaid rent for the year on January 1, 2013. Rent expired during the month of January, $7,200.
B. Equipment purchased on January 1, 2013, for $8,100 has an estimated useful life of 5 years with no salvage value. Depreciation is computed using the straight-line method.
C. Purchased supplies for $650 on January 1, 2013. Inventory of supplies was $100 on January 31, 2013.
D. Signed a 12-month contract for $4,800 of prepaid advertising on January 1, 2013.

Accepted Answer

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

Question 14

The balances of the ledger accounts for Lance's Landscaping Design on March 31, 2013, and the information needed for adjustments are shown below. Prepare the Trial Balance section, record the adjustments, and complete the worksheet.   Adjustment information:
(a) The supplies were purchased on March 1, 2013. An inventory of supplies showed $300 on hand on March 31, 2013.
(b) The amount of Prepaid Insurance represents a payment made March 1, 2013, for a six-month insurance policy.
(c) The equipment, purchased March 1, 2013, has an estimated useful life of 5 years with no salvage value. The firm uses the straight-line method of depreciation.

Accepted Answer

The answer of The balances of the ledger accounts for...

Question 15

The adjustments made on the worksheet

Accepted Answer

A)  are posted to the ledger but are not recorded in the journal. 
B)  are recorded in the journal but are not posted to the ledger. 
C)  need not be entered in the journal or the ledger. 
D)  are recorded in the journal and then posted to the general ledger accounts. 
A)  are posted to the ledger but are not recorded in the journal. 
B)  are recorded in the journal but are not posted to the ledger. 
C)  need not be entered in the journal or the ledger. 
D)  are recorded in the journal and then posted to the general ledger accounts.

Question 16

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Accepted Answer

The answer of For each of the accounts listed below,...

Question 17

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

Accepted Answer

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

Question 18

Land is a long-term asset that is not subject to depreciation.

Accepted Answer

A) True 
 B)False

Question 19

Expense items that are acquired and paid for in advance of their use are called ____________________ expenses.

Accepted Answer

The answer of Expense items that are acquired and paid...

Question 20

Read each of the following transactions for Enterprises Security Systems. Determine the accounts and amounts to be debited and credited in the necessary end-of-July adjustments.
A. On July 1, 2013, Enterprises Security Systems, a new firm, bought supplies for $2,300. The $2,300 was debited to the Supplies account. An inventory of supplies at the end of June showed that supplies costing $900 were on hand.
B. On July 1, 2013, the firm bought equipment costing $24,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
C. On July 1, 2013, the firm paid $4,500 rent in advance for a nine-month period. The $4,500 was debited to the Prepaid Rent account.

Accepted Answer

A. Supplies Expense (dr.) $1,4

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

On a balance sheet, Accumulated Depreciation-Equipment is reported

In the Adjusted Trial Balance section of the worksheet the total debits should equal the total credits.

If equipment has ____________________ value, it can be sold for additional use or for scrap.

An accumulated depreciation account has a normal ____________________ balance.

On the worksheet, the Balance Sheet columns should balance

If a worksheet is prepared at the end of the accounting year,

If an adjustment for expired rent is not recorded, the firm's expenses will be overstated.

The normal balance of a contra asset account is a debit.

If an adjustment is not recorded for supplies used, the firm's assets will be overstated.

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

The adjustments made on the worksheet

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

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

Land is a long-term asset that is not subject to depreciation.

Expense items that are acquired and paid for in advance of their use are called ____________________ expenses.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Closing Entries and the 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

Filters

Exam 5: Adjustments and the Worksheet

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

On a balance sheet, Accumulated Depreciation-Equipment is reported

In the Adjusted Trial Balance section of the worksheet the total debits should equal the total credits.

If equipment has ____________________ value, it can be sold for additional use or for scrap.

An accumulated depreciation account has a normal ____________________ balance.

On the worksheet, the Balance Sheet columns should balance

If a worksheet is prepared at the end of the accounting year,

If an adjustment for expired rent is not recorded, the firm's expenses will be overstated.

The normal balance of a contra asset account is a debit.

If an adjustment is not recorded for supplies used, the firm's assets will be overstated.

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

The adjustments made on the worksheet

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

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

Land is a long-term asset that is not subject to depreciation.

Expense items that are acquired and paid for in advance of their use are called ____________________ expenses.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Closing Entries and the 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

Filters