Question 11 pts

Which of the following are in accordance with generally accepted accounting principles?

cash basis accounting

accrual basis accounting

both cash and accrual basis accounting

neither the cash or accrual basis accounting

Flag this Question

Question 21 pts

The balance in the office supplies account on June 1 was $4,300, supplies purchased during June were $1,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is

2000

2300

3800

1500

Flag this Question

Question 31 pts

Melman Company purchased equipment for $5,000 on Novmber 1. It is estimated that annual depreciation on the computer will be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960.

Debit Depreciation Expense, $80; Credit Accumulated Depreciation, $80.

Debit Depreciation Expense, $160; Credit Accumulated Depreciation, $160.

Debit Accumulated Depreciation, $960; credit Depreciation Expense $960.

Flag this Question

Question 41 pts

Adjusting entries do not include what account?

accounts receivable

supplies

service revenue

cash

Flag this Question

Question 51 pts

Action Real Estate received a check for $12,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent was credited for the full $12,000. Financial statements will be prepared on July 31. Action Real Estate should make the following adjusting entry on July 31:

Debit Rental Revenue, $2,000; Credit Unearned Rent, $2,000.

Debit Unearned Rent, $12,000; Credit Rental Revenue, $12,000.

Debit Cash, $12,000; Credit Rental Revenue, $12,000.

Debit Unearned Rent, $2,000; Credit Rental Revenue, $2,000.

Flag this Question

Question 61 pts

The balance in the Prepaid Rent account before adjustment at the end of the year is $8,000, which represents two months rent paid on December1. The adjusting entry required on December 31 is to

debit Rent Expense, $8,000; credit Prepaid Rent $8,000.

debit Prepaid Rent, $4,000; credit Rent Expense, $4,000.

debit Rent Expense, $4,000; credit Prepaid Rent, $4,000.

debit Prepaid Rent, $8,000; credit Rent Expense, $8,000.

Flag this Question

Question 71 pts

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 Revenue and credit Cash.

debit Unearned Revenue and credit Service Revenue.

debit Unearned Revenue and credit Prepaid Expense.

debit Unearned Revenue and credit Accounts Receivable.

Flag this Question

Question 81 pts

Adjusting entries are

not necessary if the accounting system is operating properly.

usually required before financial statements are prepared.

made whenever management desires to change an account balance.

made to balance sheet accounts only.

Flag this Question

Question 91 pts

Artie's City College sold season tickets for the 2012 football season for $80,000. 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

is not required. No adjusting entries will be made until the end of the season in November.

will include a debit to Ticket Revenue and a credit to Unearned Ticket Revenue for $10,000.

will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $30,000.

will include a debit to Cash and a credit to Ticket Revenue for $40,000.

Flag this Question

Question 101 pts

Cindys Chocolates 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 $2500 per week in wages. What will be the adjusting entry to accrue wages expense at the end of January?

debit Wages Expense and credit Wages Payable for $500

debit Wages Payable and credit Wages Expense for $500

debit Wages Expense and credit Wages Payable for $1500

debit Wages Expense and credit Wages Payable for $2500