Question 1

The process of updating accounts at the end of an accounting period for previously unrecorded items that belong to the period is referred to as making ________.

Accepted Answer

The answer of The process of updating accounts at the...

Question 2

A consecutive, twelve-month accounting period is called a(n):

Accepted Answer

A) adjusted year. 
B) fiscal year. 
C) accounting year. 
D) accrual year.

Question 3

On January 1, ABC Catering purchased an oven for $5,000. The oven is expected to last five years and have no salvage value. Select the adjusting entry made on December 31, to record the depreciation of the oven for one year.

Accepted Answer

A) 
 
B) 
 
C) 
 
D)

Question 4

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Accepted Answer

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

Question 5

When a trial balance is in balance,

Accepted Answer

A) adjusting entries are not required. 
B) the company has earned a net income. 
C) the general ledger is free of errors. 
D) the debit account balances equal the credit account balances.

Question 6

The account accumulated depreciation has a normal________ balance.

Accepted Answer

The answer of The account accumulated depreciation has a normal________...

Question 7

Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?

Accepted Answer

A) Debit Depreciation; credit Depreciation Expense 
B) Debit Depreciation Expense; credit Equipment 
C) Debit Depreciation Expense; credit Accumulated Depreciation 
D) Debit Accumulated Depreciation; credit Depreciation Expense

Question 8

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

Accepted Answer

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

Question 9

Equipment costing $27,000 with an estimated salvage value of $2,040 and an estimated life of 4 years was purchased on October 31, 2019. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2019?

Accepted Answer

A) $520 
B) $1,560 
C) $1,125 
D) $1,040

Question 10

Match between columns
                        Premises:  Allocation of an asset's cost in equal amounts to each accounting period of the asset's useful life
 Journal entries made to update accounts for items that were used or expired during the accounting period
 An estimate of the amount that could be received by selling or disposing of an asset at the end of its useful life
 A balance sheet that lists assets on the left and liabilities and owner's equity on the right
 An account with a normal balance that is opposite that of a related account
 A form used to gather all data needed at the end of an accounting period to prepare financial statements
 That portion of an asset's original cost that has not yet been depreciated
 Expense items acquired, recorded, and paid for in advance of their use
 An asset account with a credit balance, which is contrary to the normal balance of an asset account
 A balance sheet that lists the asset accounts first, followed by liabilities and owner's equity
 Allocation of the cost of a long-term asset to operations during its expected useful life

Accepted Answer

The Answer of Account form balance sheet and Adjusting entries is...

Question 11

The balances of the ledger accounts for Buffet Services on September 30, 2019, 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, 2019. An inventory of supplies showed $1,200 on hand on September 30, 2019.
(b)The amount of Prepaid Insurance represents a payment made September 1, 2019, for a six-month
insurance policy.
(c)The equipment, purchased September 1, 2019, 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 12

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 13

The cost of a long-term asset, such as equipment, is transferred to expense as it is used during its useful life.

Accepted Answer

A) True 
 B)False

Question 14

The adjusting entry to account for the expiration of prepaid insurance consists of:

Accepted Answer

A) a debit to Accumulated Depreciation and a credit to Prepaid Insurance. 
B) a debit to Insurance Expense and a credit to Prepaid Insurance. 
C) a debit to Insurance Expense and a credit to Accumulated Depreciation. 
D) a debit to Prepaid Insurance and a credit to Accumulated Depreciation.

Question 15

The unadjusted net income on the income statement was $46,850. After journalizing and posting the adjusting entry for the $2,300 of supplies used during the year, the adjusted net income is:

Accepted Answer

A) $46,850. 
B) $44,550. 
C) $49,150. 
D) $45,700.

Question 16

On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $1,320. The correct adjusting entry on December 31, 2019, is:

Accepted Answer

A) debit Prepaid Insurance $110; credit Insurance Expense $110 
B) debit Insurance Expense $330; credit Prepaid Insurance $330 
C) debit Prepaid Insurance $1,320; credit Insurance Expense $1,320 
D) debit Insurance Expense $440; credit Prepaid Insurance $440

Question 17

The balance in the account Accumulated Depreciation, Equipment will:

Accepted Answer

A) be reported on the Statement of Owner's Equity. 
B) will be reported on the Balance Sheet. 
C) not appear on any financial statement. 
D) be reported on the Income Statement.

Exam 5: Adjustments and the Worksheet