1) Knowing that Chloe company prepares its financial statement yearly, and supplies on hand is equal to $600, what would the adjusting entry for supplies includes at December 31, 2018 :

a- Credit Supplies $600 b- Credit Supplies $2,550 c- Debit Supplies $1,630 d- Debit Supplies $470

2) Knowing that Chloe company prepares its financial statement yearly, and the 12-month insurance policy was purchased on June 1, 2018, what would the adjusting entry for insurance on December 31, 2018 :

a- Debit prepaid insurance $2,000, credit insurance expense $2,000 b- Debit insurance expense $3,500, credit prepaid insurance $3,500 c- Debit insurance expense $1,600, credit prepaid insurance $1,600 d- Debit prepaid insurance $1,200, credit insurance expense $1,200

3) Knowing that Chloe company prepares its financial statement yearly, and the 6-month rent contract was paid on August 31, 2018, the adjusted balance for prepaid rent on December 31, 2018 would be :

a- $4,000 b- $3,500 c- $10,000 d- $8,000

4) Knowing that Chloe company prepares its financial statement yearly, and the 6-month rent contract was paid on August 31, 2018, the adjusted balance for rent expense on December 31, 2018 would be : a- $2,500 b- $10,000 c- $8,000 d- $4,000

5) Knowing that Chloe company prepares its financial statement yearly, and the $7,500 equipment was purchased on March 31, 2017 with a useful life of 6 years and $300 salvage value, the adjusting entry for depreciation on December 31, 2018 would be :

a- Debit equipment $8,000, credit depreciation expense $8,000 b- Debit depreciation expense $900, credit accumulated depreciation $900 c- Debit depreciation expense $1,200, credit accumulated depreciation $1,200 d- Debit equipment $8,800, credit depreciation expense $8,800

6) Knowing that Chloe company prepares its financial statement yearly, and the $7,500 equipment was purchased on March 31, 2017 with a useful life of 6 years and $300 salvage value, the adjusted balance for accumulated depreciation on December 31, 2018 would be : a- $8,800 b- $4,800 c- $1,200 d- $2,100

7) Chloe Company has performed $3,700 of Cleaning services for a client but has not billed the client as of December 31, 2018. What adjusting entry must the company prepare? :

a- Debit Cash and credit Unearned Revenue $3,700 b- Debit Accounts Receivable and credit Service Revenue $600 c- Debit Unearned Revenue and credit Service Revenue $60 d- Debit Accounts Receivable and credit Service Revenue $3,700

8) Chloe Company signed a four-month note payable in the amount of $5,000 on September 30, 2018. The note requires interest at an annual rate of 5%. The amount of interest to be accrued on December 31, 2018 is:

a- $240 b- $62.5 c- $720 d- $180

9) On December 31, 2018, wages accrued were $4,200. The adjusted balance for salaries & wages expense on December 31, 2018 would be: a- $4,200 b- $21,033 c- $17,333 d- $9,200

Chloe Company a cleaning firm, has the following account balance before adjustments on December 31, 2018 Chloe Company Trial Balance (partial) December 31, 2018 Debit Account Credit Cash $12,340 3,150 Supplies Prepaid Insurance Prepaid Rent 6,000 12,000 7,500 Equipment Accumulated Depreciation Equipment $900 Accounts Payable 6,430 5,000 Notes Payable Salaries & wages Expense Insurance Expense 5,000 2,000