1) Identify the statement below that is true regarding the Allowance for Doubtful Accounts account.

Multiple Choice: The account has a normal credit balance and is reported on the balance sheet ; The account has a normal debit balance and is reported on the balance sheet; The account has a normal credit balance and is reported on the income statement ; The account has a normal debit balance and is reported on the income statement.

2) On June 1, 2019, Mighty Fast Flooring issued a 10-month, 9 percent note for $5,000. The note was recorded in the Notes Payable-Tradeaccount. The adjusting entry on December 31 to record the interest accrued (owed) on the note is:

Multiple Choice: a debit to Interest Expense for $450.00 and a credit to Interest Payable for $450.00; a debit to Interest Income for $450.00 and a credit to Interest Receivable for $450.00; a debit to Interest Expense for $262.50 and a credit to Interest Payable for $262.50; a debit to Interest Expense for $262.50 and a credit to Notes Payable-Trade for $262.50.

3)

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

Multiple Choice: $2,125; $2,000; $2,375; $2,400.

4)

Which of the following statements is correct?

Multiple Choice: Income that has been earned but not yet received is called accrued income; Unearned Subscription Income is a liability account; Under the accrual basis of accounting, revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received; All of these statements are correct.

5) On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,200 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2019, is

Multiple Choice: $120 ; $60 ; $20 ; $10.

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: debit Wages Expense $6,000; credit Wages Payable $6,000 ; debit Wages Expense $15,000; credit Cash $15,000 ; debit Wages Expense $9,000; credit Wages Payable $9,000 ; debit Wages Expense $6,000; credit Drawing $6,000

7)Robin Banks, Inc. owns an armored truck which was purchased for $80,000. The Accumulated Depreciation on the truck is $55,000. The book value of the armored truck is

Multiple Choice: $25,000 ; $80,000 ; $55,000 ; $135,000.

8)The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. The company uses the periodic inventory system. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to remove the old merchandise inventory balance would be:

Multiple Choice: a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000 ; a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000 ; a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000 ; a debit to Income Summary of $35,000 and a credit to Merchandise Inventory for $35,000.

9)Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,625 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

Multiple Choice: $1,625 ; $4,875; $3,250; $8,125

10)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: $2,400 credit ; $200 debit ; $2,000 debit ;$2,400 debit.