3 S. Adjusting entries a nd to ensure that & expenses are recognised in the period in which they are 50 2. In a worksheet, et income is entered in the following b. revenues are recorded in the period in which they are 501) c. balance sheet and income statement counts have core rect balance at the end of a ccounting period d. all of the above 14 6. Each of the following is a major type (or category) of adjusting entries acept 2. prepaid expert income statement (Dr) dance sheet (Dr). he income statement (C) and balance sheet (Dr) income statement (Dr) and balance sheet (1) dincome statement (C) and balance sheet (CH) In the master balance of its worksheet for the year ended December 31, 2010, Thit Company reported Office Equipment of $120,000. The year and adjusting en tries require an adjustment of $15.000 for depreciation ex pense for the office gipment. After adjustment, the fol lowing adjusted amount should be reported: A debit of $105.000 for Office Equipment in the bal A credit of $15,000 for Depreciation Expense Office Equipment in the income statement com. CA debit of $120.000 for Office Equipment is the bal 7. The trial balance shows Supplies 51,350 and Supplies Expense 50. If $600 of supplies are on and at the end of the period, the adjusting entry is & Supplies Supplies Expense b. Supplies Supplies Expense 750 d. A debit of $15.000 for Accumulated Deprecation- Orice Equipment in the balance sheet column ISO 5 1 750 & Supplies Expense Supplies d. Supplies Expense 600 Supplies & Adjustments for prepaid expenses a decreases and increase revenues decrease expenses and increase assets e decrease assets and inc e pe d. decrease s and increase assets 9. Accumulated Depreciation is Cash of $100 received at the time the service was pro vided was journalidad posted a debit to Cash $100 and a credit to Account Receivable $100Assuming the incorrect try is not revered the correcting entry debit Service Revenue $100 and credit Accounts Rectable Stoo debit Accounts Receivable 5100 credit Service Revenue $100 debit Cash 100 and credit Service Revenge $100 debit Accounts Receivable $100 and credit Cash $100 The sales con that normally have a debihan 1505 an owger's guy account Salin Returns and Allowances both() () d. ther(s) or (b) 4 A credit sale of 5750 is made on June 13, 00. A reum of $50 is granted on June 16. The reived as payment full on June 23 2/10 10. Queenan Company compuies depreciation on delivery SOS equipment at $1,000 for the month of June. The adjusting entry to record this depreciation is as follows: a Depreciation Expense Accumulated Depreciation- Queens Company b. Depreciation Expense Delivery Equipment 1.000 Depreciation Expense Accumulated Depreciation Delivery Equipment d. Delivery Equipment Expense 1.000 Accumulated Depreciation Delivery Equipment 11. Adjustments for earned revenues a decrease liabilities and increase revenues b. have an and reves count relationship Increase assets and increase revenues d. decrease revers and decrease assets 12 Adustments for accrued Tee 150 a. have a liates and revenues account relationship b. have an acts and account relationship 13. Kathy Siska earned a salary of $400 for the last week of ISO 6 September. She will be paid on October 1. The adjusting entry for Kathy's employer at September 30 a. Ne entry is required Salaries Expense 400 Salaris Payable Salaries Expense & Solaris Puyable " Cash 2015. The trial balance shows Supplies 50 and Supplies Expense $1.500, Ir $800 of supplies are on hand at the end of the period, the adjusting entry 56.50 13. I beginning inventory is $60.000 cost of goods par chased is 380.000, and ending inventory is $50.000, cost of goods sold i 5390.000 b. $370,000 $3001000 d. $420,000 4. Take Company has the following Units Unit Cost Inventor Jan 1 Purchase, June 19 13.000 Purchase. Now 5000 Tinker Bell has 9,000 units on hand at December 31 the cost of the ending inventory under FIFO I 599.000 $117.000 5. Using the data in Question above, the cost of the end. ing inventory under LTFO a $111.000 $99.00 h. $10.000 6 Davidson Electronics has the following Unit Casi Inventory lan 1 5.000 Perchase, April 2 15.000 Purchas. Ang 28 20.000 Davidson 7.000 units on hand December 31, the cost of ending inventory under the average cost method is 4000 $56.000 $70.000 d. 575,250 9. Rickety Company purchased 1.000 widgets and has 200 widgets in its ending inventory at a cost of $91 each anda C r eplacement cost of $80 each. The ending inves- tory under lower of cost or market is 591.000 1.200 Debit Supplies $800 and credit Supplies Expense 3800 Debil Supplies Expense $800 and credit Supplies Debit Supplies $700 and credit Supplies Expen 5700 d. Debit Supplies Expense $700 and credit Supplies 5700