REVIEW Accrual Accounting & Income Quick Check (Answers are given on page 191,) 1. On November 1, Brownstone Apartments received $3,600 from a tenant for four months rent. The receipt was credited to Uncarned Rent Revenue. What adjusting entry is needed on December 31? a. Cash b. Unearned Rent Revenue c. Uncarned Rent Revenue d. Rent Revenue Rent Revenue Rent Revenue Rent Revenue Unearned Rent Revenue 1,800 900 900 1,800 900 2. The following normal balances appeat on the adjostod trial balance of Adams Company 12,000 Depeeciation expense, eqaipment The book value of the equipment is a. $78,000. b. $87,000. c. $66,000. d. $75,000. 3. Sullivan, Inc., purchased supplies for $1,500 during 2014. At year-end, Sullivan had $400 of supplies left. The adjusting entry should a. debit Supplies $1,100. b. credit Supplies $400 c. debit Supplies $400. d. debit Supplies Expense $1,100. 4The accountant for Max Corp. failed to make the adjusting entry to record depreciation for the current year. The effect of this error is which of the following? a. Assets, net income, and stockholders' equity are all overstated. b. Assets and expenses are understated, net income is understated. c. Net income is overstated and liabilities are understated. d. Assets are overstated; stockholders' equity and net income are understated. 5. Interest earned on a note receivable at December 31 equals $225. What adjusting entry is required to accrue this interest? a. Interest Expense 225 225 225 225 225 Cash b. Interest Payable Interest Expense c. Interest Receivable 225 Interest Revenue d. Interest Expense 225 Interest Payable 6. If s real estate company fails to accrue commission revenue, a. liablities are overstated, and owners' equity is understated. b. revenues are understated, and net income is overstated. c. net income is understated, and stockholders' equity is overstated. d. assets are understated, and net income is understated REVIEW Accrual Accounting & Income Quick Check (Answers are given on page 191,) 1. On November 1, Brownstone Apartments received $3,600 from a tenant for four months rent. The receipt was credited to Uncarned Rent Revenue. What adjusting entry is needed on December 31? a. Cash b. Unearned Rent Revenue c. Uncarned Rent Revenue d. Rent Revenue Rent Revenue Rent Revenue Rent Revenue Unearned Rent Revenue 1,800 900 900 1,800 900 2. The following normal balances appeat on the adjostod trial balance of Adams Company 12,000 Depeeciation expense, eqaipment The book value of the equipment is a. $78,000. b. $87,000. c. $66,000. d. $75,000. 3. Sullivan, Inc., purchased supplies for $1,500 during 2014. At year-end, Sullivan had $400 of supplies left. The adjusting entry should a. debit Supplies $1,100. b. credit Supplies $400 c. debit Supplies $400. d. debit Supplies Expense $1,100. 4The accountant for Max Corp. failed to make the adjusting entry to record depreciation for the current year. The effect of this error is which of the following? a. Assets, net income, and stockholders' equity are all overstated. b. Assets and expenses are understated, net income is understated. c. Net income is overstated and liabilities are understated. d. Assets are overstated; stockholders' equity and net income are understated. 5. Interest earned on a note receivable at December 31 equals $225. What adjusting entry is required to accrue this interest? a. Interest Expense 225 225 225 225 225 Cash b. Interest Payable Interest Expense c. Interest Receivable 225 Interest Revenue d. Interest Expense 225 Interest Payable 6. If s real estate company fails to accrue commission revenue, a. liablities are overstated, and owners' equity is understated. b. revenues are understated, and net income is overstated. c. net income is understated, and stockholders' equity is overstated. d. assets are understated, and net income is understated