NEED ASAP PLEASE

Question 21

Crue Company had the following transactions during the calendar year: Sales of $4,800 on account Collected $2,000 for services to be performed in the following year Paid $1,625 cash in salaries Purchased airline tickets for $250 in December for a trip to take place in the following year What is Crue's current net income using accrual accounting?

		$2,925.
		$3,175.
		$4,925.
		$5,175.

3 points

Question 22

If an adjusting entry is not made for an accrued revenue,

		revenues will be overstated.
		assets will be overstated.
		stockholders' equity will be understated.
		expenses will be understated.

3 points

Question 23

If a resource has been consumed but a bill has not been received at the end of the accounting period, then

		an expense should be recorded when the bill is received.
		an expense should be recorded when the cash is paid out.
		an adjusting entry should be made recognizing the expense.
		it is optional whether to record the expense before the bill is received.

3 points

Question 24

Prepaid expenses are

		paid and recorded in an asset account before they are used or consumed.
		paid and recorded in an asset account after they are used or consumed.
		incurred but not yet paid or recorded.
		incurred and already paid or recorded.

3 points

Question 25

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

		debit Unearned Service Revenue and credit Cash.
		debit Unearned Service Revenue and credit Service Revenue.
		debit Unearned Service Revenue and credit Prepaid Expense.
		debit Unearned Service Revenue and credit Accounts Receivable.

3 points

Question 26

The preparation of adjusting entries is

		straight forward because the accounts that need adjustment will be out of balance.
		often an involved process requiring the skills of a professional.
		only required for accounts that do not have a normal balance.
		optional when financial statements are prepared.

3 points

Question 27

On January 1 of the current year, Doolittle Company purchased furniture for $7,560. The company expects to use the furniture for 3 years. The asset has no salvage value. The book value of the furniture at December 31of this year is

		$0.
		$2,520.
		$5,040.
		$7,560.

3 points

Question 28

Husker Du Supplies Inc. purchased a 12-month insurance policy on March 1 of the current year for $1,800. At March 31, the adjusting journal entry to record expiration of this asset will include a

		debit to Prepaid Insurance and a credit to Cash for $1,800.
		debit to Prepaid Insurance and a credit to Insurance Expense for $200.
		debit to Insurance Expense and a credit to Prepaid Insurance for $150.
		debit to Insurance Expense and a credit to Cash for $150.

3 points

Question 29

Pixies Inc. pays its rent of $54,000 annually on January 1. If the February 28 monthly adjusting entry for prepaid rent is omitted, which of the following will be true?

		Failure to make the adjustment does not affect the February financial statements.
		Expenses will be overstated by $4,500 and net income and stockholders' equity will be understated by $4,500.
		Assets will be overstated by $9,000 and net income and stockholders' equity will be understated by $9,000.
		Assets will be overstated by $4,500 and net income and stockholders' equity will be overstated by $4,500.

3 points

Question 30

Southeastern Louisiana University sold season tickets for the current year football season for $160,000. A total of 8 games will be played during September, October and November. In September, three games were played. The adjusting journal entry at September 30

		will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $53,333.
		will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $60,000.
		will include a debit to Cash and a credit to Ticket Revenue for $40,000.
		is not required. No adjusting entries will be made until the end of the season in November.

3 points

Question 31

At March 1, Minutemen Corp. had supplies on hand of $500. During the month, Minutemen purchased supplies of $1,200 and used supplies of $1,500. The March 31 adjusting journal entry should include a

		debit to the supplies account for $1,500.
		credit to the supplies account for $500.
		debit to the supplies account for $1,200.
		credit to the supplies account for $1,500.

3 points

Question 32

Clark Real Estate signed a four-month note payable in the amount of $8,000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is

		$80.
		$240.
		$60.
		$720.

3 points

Question 33

Sebastian Belle has performed $2,000 of CPA services for a client but has not billed the client as of the end of the accounting period. What adjusting entry must Sebastian make?

		Debit Cash and credit Unearned Service Revenue
		Debit Accounts Receivable and credit Unearned Service Revenue
		Debit Accounts Receivable and credit Service Revenue
		Debit Unearned Service Revenue and credit Service Revenue

3 points

Question 34

Trent Tables paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. There are three more working days in January (2931). Employees work 5 days a week and the company pays $900 a day in wages. What will be the adjusting entry to accrue wages expense at the end of January?

No adjusting entry is required.

Salaries and Wages Expense

4,500

Salaries and Wages Payable

4,500

Salaries and Wages Expense

900

Salaries and Wages Payable

900

Salaries and Wages Expense

2,700

Salaries and Wages Payable

2,700

3 points

Question 35

The adjusted trial balance is prepared

		after financial statements are prepared.
		before the trial balance.
		to prove the equality of total assets and total liabilities.
		after adjusting entries have been journalized and posted.

3 points

Question 36

The income statement for the current year of Nova Co. contains the following information:

Revenues		$ 70,000
Expenses:

	Wages Expense	$ 45,000
	Rent Expense	12,000
	Advertising	6,000
	Supplies Expense	6,000
	Utilities Expense	2,500
	Insurance Expense	2,000	73,500

Net Income (Loss)

$ (3,500)

The entry to close the expense accounts includes a

		credit to Income Summary for $3,500.
		debit to Income Summary for $73,500.
		debit to Wages Expense for $2,500.
		debit to Income Summary for $3,500.

3 points

Question 37

The final closing entry to be journalized is typically the entry that closes the

		revenue accounts.
		dividends account.
		retained earnings account.
		expense accounts.

3 points

Question 38

The heading for a post-closing trial balance has a date line that is similar to the one found on

		a balance sheet.
		an income statement.
		a retained earnings statement.
		the worksheet.

3 points

Question 39

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

		analyzing transactions.
		journalizing and posting adjusting entries.
		preparing a post-closing trial balance.
		posting to ledger accounts.

3 points

Question 40

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

Cash

820

Accounts Receivable

820

Cash	540
Accounts Receivable	280

Service Revenue

820

Cash	540
Service Revenue	280

Accounts Receivable

820

Accounts Receivable

820

	Cash		540
	Service Revenue		280

3 points

Question 41

An unacceptable way to make a correcting entry is to

		reverse the incorrect entry.
		erase the incorrect entry.
		compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts.
		correct it immediately upon discovery.

3 points

Question 42

The following items are taken from the financial statements of the Postal Service for the year ending December 31:

Accounts payable	18,000
Accounts receivable	11,000
Accumulated depreciation- equipment	28,000
Advertising expense	21,000
Cash	15,000
Common stock	42,000
Dividends	14,000
Depreciation expense	12,000
Equipment	210,000
Insurance expense	3,000
Notes payable, due June 30 of next year	70,000
Prepaid insurance (12-month policy)	6,000
Rent expense	17,000
Retained earnings, beginning	60,000
Salaries and wages expense	32,000
Service revenue	133,000
Supplies	4,000
Supplies expense	6,000

What is the book value of the equipment at December 31?

		$170,000
		$182,000
		$210,000
		$238,000

3 points

Question 43

The following items are taken from the financial statements of the Postal Service for the year ending December 31:

Accounts payable	18,000
Accounts receivable	11,000
Accumulated depreciation- equipment	28,000
Advertising expense	21,000
Cash	15,000
Common stock	42,000
Dividends	14,000
Depreciation expense	12,000
Equipment	210,000
Insurance expense	3,000
Notes payable, due June 30 of next year	70,000
Prepaid insurance (12-month policy)	6,000
Rent expense	17,000
Retained earnings, beginning	60,000
Salaries and wages expense	32,000
Service revenue	133,000
Supplies	4,000
Supplies expense	6,000

What is the company's net income for the year ending December 31?

		$12,000
		$28,000
		$42,000
		$133,000

3 points

Question 44

Which of the following liabilities are not related to the operating cycle?

		Salaries and wages payable
		Accounts payable
		Utilities payable
		Bonds payable