II. a. 600 For questions 17 to 22, select the journal entry that is appropriate to record the year-end adjusting entries for Twain, Inc., a company with a fiscal year ending on December 31, 2020. 17. The Prepaid Insurance account had a balance of $3,600 on December 31, 2020, and the insurance policy has a one-year term beginning March 1, 2020. Insurance Expense Prepaid Insurance 600 b. Prepaid Insurance 600 Insurance Expense 600 Insurance Expense 3,600 Prepaid Insurance 3,600 d. Prepaid Insurance 3,000 Insurance Expense 3,000 Insurance Expense 3,000 Prepaid Insurance 3,000 C. 18. e. 19. a ACC101 EXAM #1A RFQT The Supplies account had a balance of $1,950 on December 31, 2020, and a physical count of the actual supplies on hand on that date was $250. a. Supplies 1,700 Supplies Expense 1,700 b. Supplies Expense 1,700 Supplies 1,700 Supplies Expense 250 Supplies 250 d. Supplies 250 Supplies Expense 250 Supplies Expense 1,950 Supplies 1,950 The Unearned Rent account had a balance of $6,000 on December 31, 2020, and the actual amount of rent unearned on that date was $1,000 Unearned Rent 5,000 Rent Income 5,000 b. Unearned Rent 1,000 Rent Income 1,000 Rent Income 5,000 Unearned Rent 5,000 d. Rent Income 1,000 Unearned Rent 1,000 Unearned Rent 6,000 Rent Income 6,000 The Equipment and Accumulated Depreciation accounts had balances of $90,100 and $65,300 on December 31, 2020, and the depreciation of equipment for the year amounted to $5,000 Depreciation Expense 24,800 Accumulated Depreciation 24,800 b. Depreciation Expense 60,300 Accumulated Depreciation 60,300 c. Depreciation Expense 5,000 Accumulated Depreciation 5,000 d. Depreciation Expense 65,300 Accumulated Depreciation 65,300 Depreciation Expense 5,000 Equipment 5,000 C. e. 20. a. e. ACC101 EXAM #1A RFQT 21. The Wages Expense account had a balance of $63,000 on December 31, 2020, and accrued unpaid wages on that date amounted to $3,000. a. Wages Expense 3,000 Cash 3,000 b. Wages Expense 60,000 Wages Payable 60,000 c. Wages Expense 63,000 Wages Payable 63,000 d. Wages Expense 3,000 Wages Payable 3,000 Wages Expense 66,000 Wages Payable 66,000 e. 22. a. The Notes Payable account has a balance of $62,000 on December 31, 2020 for a note that was issued on October 1, 2020. No interest has been paid on the note and interest of $700 accrues each month. Interest Expense 700 Interest Payable 700 b. Interest Expense 2,100 Interest Payable 2,100 Interest Payable 2,100 Interest Expense 2,100 d. Interest Expense 62,700 Note Payable 62,700 Interest Expense 64,100 Note Payable 64,100 Questions 23 to 33 cover various topics. C. e. III. 23. a. 24. An adjusting entry may affect any two accounts. b. two balance sheet accounts. c. two income statement accounts. d. only one account e. one balance sheet account and one income statement account A trial balance is really a. a balance sheet in rough form. b. an income statement in rough form. a statement of changes in capital in rough form. d. a list of all the accounts in the ledger with their current balances. e. a type of cruel and unusual punishment Which of the following accounts would be an example of a contra account? a. Salaries Expense d. Sales b. Accumulated Depreciation Mumbly Payable c. Taxes Payable 25. e. 26. a. c. e. 27. a. b. c. d. e. ACC101 EXAM #IA RFQT The equality of the debit and credit totals on a trial balance indicates: total debits equal total credits b. there were no errors in the account balances. there was a posting error. d. nothing, because they must balance the first time a trial balance is prepared. the existence of a fake entry. Posting refers to the process of journalizing data. making a trial balance. transferring data to a ledger account. selecting the data to be recorded in the journal. preparing financial statements. How many of the following financial statements (balance sheet, income statement, statement of owner's equity) would have a heading indicating a period of time, for example, "For the Year Ending May 31, 2020"? Three Two 28. a. b. C. d. One None 29. a. b. 30. a. c. if total assets increased by $6,000 during a period of time and owner's equity decreased by $9,000 during the same period, the amount and direction (increase or decrease) of the period's change in total liabilities is: (Hint: A-L+OE) $15,000 increase $3,000 increase $15,000 decrease d. $3,000 decrease Adjusting entries are made to ensure that expenses are recognized in the period in which they are incurred. b. revenues are recorded in the period in which they are earned. balance sheet and income statement accounts have correct balances at the end of an accounting period. d. all of the above. e. none of the above. Shen Company purchased equipment for $15,000 on January 1, 2011 and takes depreciation of $2,000 each year. The balance sheet prepared on December 31, 2020 would show equipment with a: cost of $13,000 b. book value of $15,000. book value of $11,000 cost of $11,000. book value of $13,000 31. a. c. d. e. ACC101 EXAM #1A RFQT 32 a. b. c. d. Which of the following accounts should be closed to income summary (or directly to capital) at the end of the fiscal year? Salary Expense Insurance Expense Service Revenue all of the above e. none of the above Which of the following accounts in the ledger will ordinarily appear in the post-closing trial balance? a. Drawing Service Revenue Salary Expense all of the above none of the above 33 b. c. d. e. IV. Use the following adjusted trial balance for the year ended December 31, 2020 to answer questions 34 to 40 BORDEAUX COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 CREDIT DEBIT $ 9,800 9,200 1,000 24,000 300,000 100,000 65,000 Cash Accounts Receivable Supplies Land Office Building Accumulated Depreciation - Office Building Office Equipment Accumulated Depreciation - Office Equipment Accounts Payable Interest Payable Salaries Payable Notes Payable (due in monthly installments of $500) Unearned Revenue (due within six months) Betty Bordeaux, Capital Betty Bordeaux, Withdrawals Service Revenue Salary Expense Office Supplies Expense Depreciation Expense - Office Building Depreciation Expense - Office Equipment Interest Expense Miscellaneous Expense Totals 33,000 3,200 800 2,400 16,000 40,000 151,600 32,000 298,000 183,400 1,600 7,500 6,500 3,200 1,800 $645,000 $645,000 ACC101 EXAM NIA RFQT 34. The amount of net income or net loss for the year was: a. $62,000 d. $298,000 b. $94,000 e. $645,000 c. $276,000 35. a b. C 36. Betty Bordeaux, Capital at December 31, 2020 was: $449,600 d. $151,600 $417,600 e. $119,600 $213,600 Total current assets at December 31, 2020 were: a. $645,000 d. $44,000 b. $409,000 $20,000 $276,000 Total Property, Plant and Equipment at December 31, 2020 were: $645,000 d. $256,000 $389,000 e. $232,000 c. $365,000 e. C. 37. a. b. 38 C. 39. Total current liabilities at December 31, 2020 were: a. $6,900 d. $46,900 b. $12,400 e. $52,400 $46,400 Total long-term liabilities at December 31, 2020 were: $55,500 d. $15,500 $50,000 $10,000 $16,000 The third line of the heading on the balance sheet would be: December 31, 2020 b. For the Year Ended December 31, 2020. C. Betty Bordeaux, Capital d. Cash $9,800 e. Supplies, $1,000 a. b. C e. 40 a ACC101 EXAM #1A RFQT 21. The Wages Expense account had a balance of $63,000 on December 31, 2020, and accrued unpaid wages on that date amounted to $3,000. a. Wages Expense 3,000 Cash 3,000 b. Wages Expense 60,000 Wages Payable 60,000 c. Wages Expense 63,000 Wages Payable 63,000 d. Wages Expense 3,000 Wages Payable 3,000 Wages Expense 66,000 Wages Payable 66,000 e. 22. a. The Notes Payable account has a balance of $62,000 on December 31, 2020 for a note that was issued on October 1, 2020. No interest has been paid on the note and interest of $700 accrues each month. Interest Expense 700 Interest Payable 700 b. Interest Expense 2,100 Interest Payable 2,100 Interest Payable 2,100 Interest Expense 2,100 d. Interest Expense 62,700 Note Payable 62,700 Interest Expense 64,100 Note Payable 64,100 Questions 23 to 33 cover various topics. C. e. III. 23. a. 24. An adjusting entry may affect any two accounts. b. two balance sheet accounts. c. two income statement accounts. d. only one account e. one balance sheet account and one income statement account A trial balance is really a. a balance sheet in rough form. b. an income statement in rough form. a statement of changes in capital in rough form. d. a list of all the accounts in the ledger with their current balances. e. a type of cruel and unusual punishment Which of the following accounts would be an example of a contra account? a. Salaries Expense d. Sales b. Accumulated Depreciation Mumbly Payable c. Taxes Payable 25. e