Question
1. Which of the following are NOT in accordance with generally accepted accounting principles? cash basis accounting accrual basis accounting both cash and accrual basis
1. Which of the following are NOT in accordance with generally accepted accounting principles?
cash basis accounting |
accrual basis accounting |
both cash and accrual basis accounting |
neither the cash or accrual basis accounting |
2.
The balance in the office supplies account on June 1 was $2,000, supplies purchased during June were $4,300, and the supplies on hand at June 30 were $1,500. The amount to be used for the appropriate adjusting entry is
800 |
6300 |
3500 | |
4800 |
3.
Melman Company purchased equipment for $5,000 on October 1. It is estimated that annual depreciation on the computer will be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Debit Depreciation Expense, $240; Credit Accumulated Depreciation, $240. |
Debit Depreciation Expense, $80; Credit Accumulated Depreciation, $80. |
Debit Depreciation Expense, $160; Credit Accumulated Depreciation, $160. |
Debit Accumulated Depreciation, $960; credit Depreciation Expense $960. |
4.
Question 41 pts
Adjusting entries do not include what account?
accounts receivable |
supplies |
service revenue |
cash |
5.Action Real Estate received a check for $18,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent was credited for the full $18,000. Financial statements will be prepared on July 31. Action Real Estate should make the following adjusting entry on July 31: Debit Unearned Rent, $3,000; Credit Rental Revenue, $3,000. Debit Unearned Rent, $18,000; Credit Rental Revenue, $18,000. Debit Cash, $18,000; Credit Rental Revenue, $18,000. Debit Rent Revenue, $3,000; Credit Unearned Rent, $3,000.
6.
The balance in the Prepaid Rent account before adjustment at the end of the year is $8,000, which represents two months rent paid on December1. The adjusting entry required on December 31 is to
debit Rent Expense, $8,000; credit Prepaid Rent $8,000. |
debit Prepaid Rent, $4,000; credit Rent Expense, $4,000. |
debit Rent Expense, $4,000; credit Prepaid Rent, $4,000. |
debit Prepaid Rent, $8,000; credit Rent Expense, $8,000. 7. If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed after the services are performed will be
|
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