1. Which of the following are examples of adjusting entries? i) An entry to record interest owing on a bank loan at the end of the period. The interest is not yet paid, and is previously unrecorded. ii) A depreciation entry to reflect the use of long-lived equipment during the period. iii) An entry to correct an error that was discovered in the trial balance, when a $100 debit was incorrectly posted to inventory rather than accounts receivable.

a. i & ii

b. i & iii

c. ii & iii

d. i, ii, & iii

2. Which of the following would be the adjusting journal entry to recognize earned but unpaid wages for the period?

a. Debit. Wages Expense, Credit. Cash

b. Debit. Wages Payable, Credit. Cash

c. Debit. Wages Payable, Credit. Wages Expense

d. Debit. Wages Expense, Credit. Wages Payable

3. When an inventory item that cost $75 is sold on account for $100, which of the following would be included in the journal entry recording the cost of goods sold?

a. Debit. Cash $100

b. Credit. Cost of goods sold $75

c. Credit. Accounts Receivable $100

d. Credit. Inventory $75