Question 1

Unearned Revenue has a credit balance in the Trial Balance section of the worksheet of $8,300 and a debit of $600 in the adjustments section of the worksheet, the balance of Unearned Revenue in the Adjusted Trial Balance section of the worksheet is a

Accepted Answer

A)  $600 debit.
B)  $7,700 credit.
C)  $8,900 credit.
D)  $7,700 debit.E) None of the above
F) B) and D)

Question 2

Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,625 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

Accepted Answer

A)  $4,875
B)  $3,250
C)  $8,125
D)  $1,625E) B) and C)
F) B) and D)

Question 3

On October 1, 2019, Paige Turner Publishing received $5,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2019, is

Accepted Answer

A)  Debit Unearned Subscriptions $1,350; credit Subscriptions Income $1,350.
B)  Debit Unearned Subscriptions $450; credit Subscriptions Income $450.
C)  Debit Unearned Subscriptions $5,400; credit Subscriptions Income $5,400.
D)  Debit Subscriptions Income $1,350; credit Unearned Subscriptions $1,350.E) All of the above
F) A) and C)

Question 4

The debit and credit amounts for the Income Summary account are combined into one number in the Income Statement section of the worksheet.

Accepted Answer

A) True 
 B)False

Question 5

The ending merchandise inventory is recorded on the worksheet in the

Accepted Answer

A)  Income Statement Debit column only.
B)  Income Statement Credit and the Balance Sheet Debit columns.
C)  Balance Sheet Debit column only.
D)  Income Statement Credit column only.E) A) and C)
F) A) and D)

Question 6

Accrued income is income that has been

Accepted Answer

A)  budgeted for the fiscal period.
B)  earned but not received.
C)  received but not earned.
D)  earned and received.E) B) and D)
F) A) and D)

Question 7

Millie's Bakery employees earn $4,500 a week for a five-day work week and are paid every Friday. If December 31 falls on a Wednesday, calculate the amount that is owed and select the adjusting entry needed to record the owed but unpaid salaries as of December 31.

Accepted Answer

A)  a debit to Salaries Payable for $900 and a credit to Salaries Expense for $900.
B)  a debit to Salaries Expense for $2,700 and a credit to Salaries Payable for $2,700.
C)  a debit to Income Summary for $2,700 and a credit to Salaries Payable for $2,700.
D)  a debit to Salaries Expense for $4,500 and a credit to Salaries Payable for $4,500.E) None of the above
F) A) and D)

Question 8

With the accrual basis of accounting, revenue from a credit sale is recognized

Accepted Answer

A)  each time a payment on an account balance is received.
B)  on the date the account is collected in full.
C)  either on the date of the sale or when the amount of the sale is collected.
D)  on the date of the sale.E) B) and D)
F) A) and B)

Question 9

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment on December 31, 2019. On August 1, 2019, the firm paid a premium of
$5,640 in cash for a 1-year insurance policy.

Accepted Answer

Debit Insurance Expe...

Question 10

The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.

Accepted Answer

A) True 
 B)False

Question 11

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During the year, the firm had net credit sales of $890,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts.

Accepted Answer

Debit Uncollectible ...

Question 12

To determine the amount of the annual depreciation, the depreciable base is divided by the number of years in the asset's________ .

Accepted Answer

The answer of To determine the amount of the annual...

Question 13

Allowance for Doubtful Accounts is reported in the

Accepted Answer

A)  Liabilities section of the balance sheet.
B)  Assets section of the balance sheet.
C)  Operating Expenses section of the income statement.
D)  Cost of Goods Sold section of the income statement.E) None of the above
F) All of the above

Question 14

The adjusting entry to record accrued interest on a note receivable increases the Interest Receivable account and increases the ________ account.

Accepted Answer

The answer of The adjusting entry to record accrued interest...

Question 15

When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid.

Accepted Answer

A) True 
 B)False

Question 16

Under a periodic inventory system, to remove the beginning inventory from the books, the Income Summary account is credited for the amount of the beginning inventory.

Accepted Answer

A) True 
 B)False

Question 17

On September 1, 2019, a firm accepted a 6-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is

Accepted Answer

A)  $960.00.
B)  No accrual is necessary.
C)  $320.00.
D)  $240.00.E) All of the above
F) A) and B)

Question 18

Which of the following statements is not correct?

Accepted Answer

A)  The cost less the salvage value equals the depreciable base of a long-term asset.
B)  Each adjustment for an accrued expense includes a credit to a liability account.
C)  If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account.
D)  Uncollectible Accounts Expense is a contra asset account.E) A) and B)
F) C) and D)

Question 19

After the two adjusting entries for merchandise inventory for Marley Motorcycles have been entered on the worksheet, the Income Summary account in the Adjusted Trial Balance section has a debit of $65,000 and a credit of $73,000. The amount of merchandise inventory at the beginning of the year is:

Accepted Answer

A)  $8,000.
B)  $65,000.
C)  $73,000.
D)  $138,000.E) None of the above
F) A) and B)

Question 20

The Supplies account has a trial balance of $3,136. A year-end inventory shows $1,734 worth of supplies left at the end of the year. The correct adjusting entry is:

Accepted Answer

A)  debit Supplies $1,402; credit Supplies Expense $1,402
B)  debit Supplies Expense $1,734; credit Prepaid Supplies $1,734
C)  debit Supplies Expense $3,136; credit Supplies $3,136
D)  debit Supplies Expense $1,402; credit Supplies $1,402E) A) and B)
F) B) and D)

Exam 12: Accruals, Deferrals, and the Worksheet

Allowance for Doubtful Accounts is reported in the

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Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. During the year, the firm had net credit sales of $890,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts.

Correct AnswerverifiedDebit Uncollectible ...View AnswerShow Answer

Which of the following statements is not correct?

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On September 1, 2019, a firm accepted a 6-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is

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The ending merchandise inventory is recorded on the worksheet in the

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The Supplies account has a trial balance of $3,136. A year-end inventory shows $1,734 worth of supplies left at the end of the year. The correct adjusting entry is:

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When the accrual basis of accounting is used, expenses are recognized only in the period during which they are paid.

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After the two adjusting entries for merchandise inventory for Marley Motorcycles have been entered on the worksheet, the Income Summary account in the Adjusted Trial Balance section has a debit of $65,000 and a credit of $73,000. The amount of merchandise inventory at the beginning of the year is:

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Unearned Revenue has a credit balance in the Trial Balance section of the worksheet of $8,300 and a debit of $600 in the adjustments section of the worksheet, the balance of Unearned Revenue in the Adjusted Trial Balance section of the worksheet is a

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Accrued income is income that has been

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With the accrual basis of accounting, revenue from a credit sale is recognized

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On October 1, 2019, Paige Turner Publishing received $5,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2019, is

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Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,625 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

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Determine the account and amount to be debited and the account and amount to be credited for the following adjustment on December 31, 2019. On August 1, 2019, the firm paid a premium of $5,640 in cash for a 1-year insurance policy.

Correct AnswerverifiedDebit Insurance Expe...View AnswerShow Answer

Millie's Bakery employees earn $4,500 a week for a five-day work week and are paid every Friday. If December 31 falls on a Wednesday, calculate the amount that is owed and select the adjusting entry needed to record the owed but unpaid salaries as of December 31.

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To determine the amount of the annual depreciation, the depreciable base is divided by the number of years in the asset's________ .

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The balance of the Merchandise Inventory account that appears in the Trial Balance section of the worksheet represents the stock of goods on hand at the beginning of the current period.

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The debit and credit amounts for the Income Summary account are combined into one number in the Income Statement section of the worksheet.

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Under a periodic inventory system, to remove the beginning inventory from the books, the Income Summary account is credited for the amount of the beginning inventory.

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The adjusting entry to record accrued interest on a note receivable increases the Interest Receivable account and increases the ________ account.

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Debit Uncollectible ...
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