15.The adjusted trial balance combines the trial balance items with the adjusting entries to determine the adjusted balances.

	True
	False

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16.The December 31, 2010 worksheet for Fran's Fine Dining showed the following amounts related to the Supplies Expense account: (a). In the Trial Balance debit column: $745 (b). In the Adjustments debit column: $125 (c). In the Adjusted Trial Balance debit column: $870 What is the proper balance in the Supplies Expense account on January 1, 2011, after all closing entries for 2010 have been posted, but before any 2011 transactions are recorded?

	$0.
	$125.
	$745.
	$870.

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22.Which statement is true about an adjusted trial balance?

	Revenue accounts and expense accounts should not appear on the adjusted trial balance.
	Balance sheet items are presented before income statement items.
	It is prepared before adjusting entries.
	Accumulated depreciation should equal depreciation expense.

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Multiple Choice	Difficulty: Medium
MC Qu. 79 Which statement is true about an adjusted tr...	Learning Objective: 04-09 Prepare an adjusted trial balance and describe its purpose.

23.Retained Earnings at the end of a period:

	Is determined in the statement of Retained Earnings.
	Is equal to the balance in the Retained Earnings account in the adjusted trial balance at the end of a period.
	Is equal to Retained Earnings at the beginning of the period, minus net income (or plus net loss) for the period.
	Appears in the income statement for the period.

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Dolphin Co. received $1,500 in fees during 2009, 1/3 of which was earned in 2010, the rest was earned when received. The company should report which of the following amounts as income in 2009?

	$500.
	$1,000.
	$1,500.
	$0.

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Multiple Choice	Difficulty: Medium
MC Qu. 110 Dolphin Co. received $1,500 in fees during 2...	Learning Objective: 04-07 Explain how the principles of realization and matching relate to adjusting entries.

Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV: Jan. 5 Purchased 8 Flat TVs at a unit cost of $1,400 Jan. 18 Purchased 5 additional Flat TVs at $1,400 each Feb. 12 Sold 9 Flat TVs to the Duke Hotel for $15,300

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Section Break

SB Washington Warehouse is a small retail busin...

45.Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the purchase on January 18th would include which of the following?

	A credit to Inventory for $7,000.
	A debit to the Purchases account for $7,000.
	A debit to Inventory for $7,000.
	A debit to the Cost of Goods Sold for $7,000.

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Multiple Choice	Difficulty: Medium
MC Qu. 91 Refer to the information above. If Washingto...	Learning Objective: 06-03 Account for purchases and sales of merchandise in a perpetual inventory system.

46.Refer to the information above. The gross profit on the Flat TVs as of February 12^th is:

	$2,700.
	$4,100.
	$15,300.
	$11,200.

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Multiple Choice	Difficulty: Medium
MC Qu. 92 Refer to the information above. The gross pr...	Learning Objective: 06-03 Account for purchases and sales of merchandise in a perpetual inventory system.

47.Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except

	A credit to Purchases for $12,600.
	A credit to Inventory for $12,600.
	A credit to Sales Revenue for $15,300.
	A debit to the Cost of Goods Sold for $12,600.

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Multiple Choice	Difficulty: Medium
MC Qu. 93 Refer to the information above. If Washingto...	Learning Objective: 06-03 Account for purchases and sales of merchandise in a perpetual inventory system.

48. Refer to the information above. Washington maintains a subsidiary ledger account for each type of TV carried in the store. An examination of the account for the Flat TV model at the end of February would show:

	13 units on hand with a total value of $18,200.
	4 units on hand with a total value of $1,400.
	4 units on hand with a total value of $5,600.
	The amount that Washington owes to Bass.

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If an asset was purchased on January 1, 2006 for $140,000 with an estimated life of 5 years, what is the accumulated depreciation at December 31, 2009?

	$84,000.
	$112,000.
	$56,000.
	$28,000.

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	HELLO WORLD!

Multiple Choice	Difficulty: Medium
MC Qu. 94 Refer to the information above. Washington m...	Learning Objective: 06-03 Account for purchases and sales of merchandise in a perpetual inventory system.

True / False	Difficulty: Medium
TF Qu. 9 The adjusted trial balance combines the tria...	Learning Objective: 04-09 Prepare an adjusted trial balance and describe its purpose.