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Q1)At December 31, 2019, before any year-end adjustments, Karr Company's Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a
Q1)At December 31, 2019, before any year-end adjustments, Karr Company's Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $2,000 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be: * 1)$3,000 2)$1,450 3)$4,450 4)None of the above Q2) A Company purchased a computer system for $3,600 on January 1, 2018. The company expects to use the computer system for 3 years. It has no salvage value. Yearly depreciation expense on the asset is: * 1)$0 2)$100 3)$1,200 4)$3,600 Q3)Maple Tree Inc. purchased a 12-month insurance policy on March 1, 2019 for $900. At December 31, 2019, the adjusting journal entry to record expiration of this asset will include a: * 1)Debit to Insurance Expense and a credit to Prepaid Insurance for $750 2)Debit to Prepaid Insurance and a credit to Insurance Expense for $100 3)Debit to Insurance Expense and a credit to Prepaid Insurance for $75 4)None of the above Q4)A Company has performed $500 of CPA services for a client but has not collected the client as of the end of the accounting period. What adjusting entry must the company make? * 1)Debit Cash and credit Unearned Revenue $500 2)Debit Accounts Receivable and credit Service Revenue $50 3)Debit Unearned Revenue and credit Service Revenue $50 4)None of the above
Q1)At December 31, 2019, before any year-end adjustments, Karr Company's Insurance Expense account had a balance of $1,450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $2,000 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be: *
1)$3,000
2)$1,450
3)$4,450
4)None of the above
Q2) A Company purchased a computer system for $3,600 on January 1, 2018. The company expects to use the computer system for 3 years. It has no salvage value. Yearly depreciation expense on the asset is: *
1)$0
2)$100
3)$1,200
4)$3,600
Q3)Maple Tree Inc. purchased a 12-month insurance policy on March 1, 2019 for $900. At December 31, 2019, the adjusting journal entry to record expiration of this asset will include a: *
1)Debit to Insurance Expense and a credit to Prepaid Insurance for $750
2)Debit to Prepaid Insurance and a credit to Insurance Expense for $100
3)Debit to Insurance Expense and a credit to Prepaid Insurance for $75
4)None of the above
Q4)A Company has performed $500 of CPA services for a client but has not collected the client as of the end of the accounting period. What adjusting entry must the company make? *
1)Debit Cash and credit Unearned Revenue $500
2)Debit Accounts Receivable and credit Service Revenue $50
3)Debit Unearned Revenue and credit Service Revenue $50
4)None of the above
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