1. The Supplies account had a balance of $1,200 when a physical count indicated that supplies on hand totaled $250. This means that supplies in the amount of ___________ were used during the accounting period.

1. $950
2. $1,200
3. $1,450
4. $250

2. MacGyver Company bought equipment on January 3, 20X1, for $34,600. At the time of purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $1,120. Using the straight-line method, the amount of one year's depreciation is

1. $5,580
2. $1,120
3. $465
4. $5,767

3. Machinery costing $90,000 with an estimated salvage value of $6,000 and an estimated life of 4 years was purchased on October 31, 20X1. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 20X1?

1. $1,750
2. $21,000
3. $3,500
4. $3,750

4. On September 1, 20X1, Upholstery Masters purchased a one-year insurance policy for $720. The correct adjusting entry on December 31, 20X1, is:

1. debit Prepaid Insurance $60; credit Insurance Expense $60
2. debit Prepaid Insurance $240; credit Insurance Expense $240
3. debit Insurance Expense $60; credit Prepaid Insurance $60
4. debit Insurance Expense $240; credit Prepaid Insurance $240

5. Which of the following statements is not correct?

1. Net loss is recorded on the worksheet in the Income Statement Credit column and the Balance Sheet Debit column.
2. The difference between the total of the Income Statement Debit column and the total of the Income Statement Credit column of the worksheet represents either net income or net loss.
3. If an account has a debit balance in the Trial Balance section of the worksheet and there is a credit entry in the Adjustments section, the credit amount is added when computing the balance to be shown in the Adjusted Trial Balance section of the worksheet.
4. Net income is recorded on the worksheet in the Income Statement Debit column and the Balance Sheet Credit column.

6. Which of the following would be reported on the balance sheet for a building?

1. residual value
2. book value
3. market value
4. salvage value

7. The account credited in the adjusting entry made to record the expiration of a portion of prepaid rent is the ___________ account.

1. Accounts Payable
2. Cash
3. Prepaid Rent
4. Rent Expense

8. 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:

1. $49,150
2. $45,700
3. $46,850
4. $44,550

9. The journal entry to record the purchase of equipment for $660 and Furniture for $350 in a single transaction would include

1. a debit to Equipment for $660, a credit to Furniture for $350, and a credit to Cash for $310.
2. a debit to Equipment for $660 and a credit to Furniture for $350.
3. a debit to Equipment for $660, a debit to Furniture for $350, and a credit to Cash for $1,010.
4. a debit to Cash for $1,010, a credit to Equipment for $660, and a credit to Furniture for $350.

10. Kelly Corporation reported Net Income for the year ended December 31, 20X1, of $16,900 then discovered that an entry for revenue earned on December 30, 20X1, in the amount of $1,400 had not been journalized and posted. What is the Net Income after the correcting journal entry is journalized and posted?

1. $16,900
2. $15,500
3. $14,100
4. $18,300