1 A physical count of supplies on hand at the end of May for Masters, Inc indicated $1,250 of supplies on hand The general ledger balance before any adjustment is $2,100 What is the adjusting entry for office supplies that should be recorded on May 31 Multiple Choice Debit Supplies $1,250 and credit Cash $1,250 Debit Supplies Expense $850 and credit Supplies $850 Debit Supplies Expense $1,250 and credit Supplies $1,250 Debit Supplies Expense $1,250 and credit Supplies $2,100 Debit Prepaid Supplies $850 and credit Supplies Expense $850 2 After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $33,000 The entry to close the income summary account will be Multiple Choice Debit Income Summary $33,000 credit Dividends $33,000 Debit Retained earnings $33,000 credit Income Summary $33,000 Credit Retained earnings $33,000 debit Dividends $33,000 Debit Income Summary $33,000 credit Retained earnings $33,000 Debit Dividends $33,000 credit Income Summary $33,000 3 Accrued revenues Multiple Choice Are also called unearned revenues Are listed on the balance sheet as liabilities Are recorded at the end of an accounting period because cash has already been received for revenues earned At the end of one accounting period often result in cash payments in the next period At the end of one accounting period result in cash receipts in a future period 4 Which of the following statements is true Multiple Choice A post closing trial balance should include only permanent accounts The work sheet can be substituted for preparing financial statements By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts Closing entries are only necessary if errors have been made Retained earnings must be closed each accounting period

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 06, 2024

1.A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance

1.A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?

Multiple Choice

Debit Supplies $1,250 and credit Cash $1,250.
Debit Supplies Expense $850 and credit Supplies $850.
Debit Supplies Expense $1,250 and credit Supplies $1,250.
Debit Supplies Expense $1,250 and credit Supplies $2,100.
Debit Prepaid Supplies $850 and credit Supplies Expense $850.

After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $33,000. The entry to close the income summary account will be:

Multiple Choice

Debit Income Summary $33,000; credit Dividends $33,000.
Debit Retained earnings $33,000; credit Income Summary $33,000.
Credit Retained earnings $33,000; debit Dividends $33,000.
Debit Income Summary $33,000; credit Retained earnings $33,000.
Debit Dividends $33,000; credit Income Summary $33,000.

Accrued revenues:

Multiple Choice

Are also called unearned revenues.
Are listed on the balance sheet as liabilities.
Are recorded at the end of an accounting period because cash has already been received for revenues earned.
At the end of one accounting period often result in cash payments in the next period.
At the end of one accounting period result in cash receipts in a future period.

Which of the following statements is true?

Multiple Choice

A post-closing trial balance should include only permanent accounts.
The work sheet can be substituted for preparing financial statements.
By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.
Closing entries are only necessary if errors have been made.
Retained earnings must be closed each accounting period.