Question 1

On November 1,2016,Paige Turner Publishing received $50,400 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 31,2016,is

Accepted Answer

A)   Debit Subscriptions Income $8,400;credit Unearned Subscriptions $8,400.
B)   Debit Unearned Subscriptions $8,400;credit Subscriptions Income $8,400.
C)   Debit Unearned Subscriptions $4,200;credit Subscriptions Income $4,200.
D)   Debit Unearned Subscriptions $50,400;credit Subscriptions Income $50,400.E) None of the above
F) All of the above

Question 2

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 $490,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Accepted Answer

Debit Uncollectible ...

Question 3

If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is

Accepted Answer

A)   $900 debit.
B)   $500 debit.
C)   $500 credit.
D)   $900 credit.E) All of the above
F) B) and C)

Question 4

The trial balance of Premier Lighting Co.shows Merchandise Inventory of $35,000.Based on a count taken on December 31,merchandise inventory at the end of the year actually totaled $28,000.The adjusting entry to remove the old merchandise inventory balance would be:

Accepted Answer

A)   a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.
B)   a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.
C)   a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.
D)   a debit to Income Summary of $35,000 and a credit to Merchandise Inventory for $35,000.E) B) and D)
F) A) and D)

Question 5

Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,250 per day.If December 31,2016,is on a Monday,the amount of the adjusting entry for accrued wages is:

Accepted Answer

A)   $1,250
B)   $5,000
C)   $6,250
D)   $3,750E) None of the above
F) B) and D)

Question 6

Which of the following statements is correct?

Accepted Answer

A)   Income that has been earned but not yet received is called accrued income.
B)   Unearned Subscription Income is a liability account.
C)   Under the accrual basis of accounting,revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received.
D)   All of these statements are correct.E) B) and C)
F) A) and D)

Question 7

Accrued income is income that has been

Accepted Answer

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

Question 8

With the accrual basis of accounting,it is appropriate to recognize revenue from a credit sale

Accepted Answer

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

Question 9

The Merchandise Inventory account is debited when goods are purchased for resale and credited when goods are sold and delivered to customers.

Accepted Answer

A) True 
 B)False

Question 10

If an account has a debit balance in the Trial Balance section and a debit entry in the Adjustments section,_______________ the two amounts.

Accepted Answer

The answer of If an account has a debit balance...

Question 11

On December 1,2016,a firm accepted a 6-month,12 percent note for $5,000 from a customer.The adjusting entry on December 31 to record the interest earned on the note is:

Accepted Answer

A)   a debit to Interest Receivable for $600 and a credit to Interest Income for $600.
B)   a debit to Interest Income for $600 and a credit to Interest Receivable for $600.
C)   a debit to Interest Receivable for $60 and a credit to Interest Income for $60.
D)   a debit to Interest Receivable for $300 and a credit to Interest Income for $300.E) B) and D)
F) None of the above

Question 12

Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day.If the last day of the year is on Wednesday,the adjusting entry to record the accrued wages is:

Accepted Answer

A)   debit Wages Expense $6,000;credit Cash $6,000
B)   debit Wages Expense $4,000;credit Cash $4,000
C)   debit Wages Expense $6,000;credit Wages Payable $6,000
D)   debit Wages Expense $6,000;credit Drawing $6,000E) None of the above
F) All of the above

Question 13

Which of the following statements is correct?

Accepted Answer

A)   On the worksheet,the amount of the ending merchandise inventory is shown in the Income Statement Credit column in the account Income Summary and the Balance Sheet Debit column in the account Merchandise Inventory.
B)   On the worksheet,the totals of the Income Statement columns should equal the totals of the Balance Sheet columns.
C)   On the worksheet,if debits exceed credits in the Adjusted Trial Balance section,the difference represents a net loss.
D)   All of these statements are correct.E) All of the above
F) C) and D)

Question 14

After both of the entries for the inventory adjustment have been posted,the debit in the Income Summary account represents:

Accepted Answer

A)   Net Income
B)   Ending Inventory
C)   Beginning Inventory
D)   Cost of Goods SoldE) C) and D)
F) A) and C)

Question 15

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.Equipment purchased for $104,000 on January 3,2016,has an estimated life of 5 years and an estimated salvage value of $9,000.The firm uses the straight-line method of depreciation.Determine the adjustment for the month ended January 31,2016.

Accepted Answer

Debit Depreciation Expense--Eq...

Question 16

On January 1,2016,a firm purchased machinery for $17,000.Depreciation expense for the year ending December 31,2016,given the straight-line method,a 5-year useful life,and a salvage value of $3,000,is

Accepted Answer

A)   $3,000.
B)   $3,400.
C)   $2,800.
D)   $2,400.E) B) and C)
F) C) and D)

Question 17

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

Accepted Answer

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

Question 18

During the year,Spirit Fun had net credit sales of $500,000.Past experience shows that 1.5 percent of the firm's net credit sales result in uncollectible accounts.Determine the adjusting entry needed to recognize the estimated expense for these uncollectible accounts.

Accepted Answer

A)   debit Allowance for Doubtful Accounts $7,500 and credit Accounts Receivable $7,500.
B)   debit Uncollectible Accounts Expense $7,500 and credit Accounts Receivable $7,500.
C)   debit Uncollectible Accounts Expense $7,500 and credit Allowance for Doubtful Accounts $7,500.
D)   debit Uncollectible Accounts Expense $75,000 and credit Allowance for Doubtful Accounts $75,000.E) All of the above
F) B) and D)

Question 19

Robin Banks,Inc.owns an armored truck which was purchased for $80,000.The Accumulated Depreci­ation on the truck is $55,000.The book value of the armored truck is

Accepted Answer

A)   $25,000.
B)   $80,000.
C)   $55,000.
D)   $135,000.E) C) and D)
F) B) and C)

Question 20

On November 1,2016,a firm accepted a 4-month,10 percent note for $900 from a customer with an overdue balance.The accrued interest recorded for this note for the year ended December 31,2016,is

Accepted Answer

A)   $90.
B)   $75.
C)   $30.
D)   $15.E) A) and B)
F) B) and C)

Exam 12: Accruals, Deferrals, and the Worksheet

Accrued income is income that has been

Correct Answer
verified

Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day.If the last day of the year is on Wednesday,the adjusting entry to record the accrued wages is:

Correct Answer
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Robin Banks,Inc.owns an armored truck which was purchased for $80,000.The Accumulated Depreciation on the truck is $55,000.The book value of the armored truck is

Correct Answer
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The trial balance of Premier Lighting Co.shows Merchandise Inventory of $35,000.Based on a count taken on December 31,merchandise inventory at the end of the year actually totaled $28,000.The adjusting entry to remove the old merchandise inventory balance would be:

Correct Answer
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Which of the following statements is correct?

Correct Answer
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If an account has a debit balance in the Trial Balance section and a debit entry in the Adjustments section,_______________ the two amounts.

Correct Answer
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After both of the entries for the inventory adjustment have been posted,the debit in the Income Summary account represents:

Correct Answer
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On December 1,2016,a firm accepted a 6-month,12 percent note for $5,000 from a customer.The adjusting entry on December 31 to record the interest earned on the note is:

Correct Answer
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The adjusting entry to record accrued interest on a note receivable increases the Interest Receivable account and ____________________ the Interest Income account.

Correct Answer
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The Merchandise Inventory account is debited when goods are purchased for resale and credited when goods are sold and delivered to customers.

Correct Answer
verified

With the accrual basis of accounting,it is appropriate to recognize revenue from a credit sale

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
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On November 1,2016,a firm accepted a 4-month,10 percent note for $900 from a customer with an overdue balance.The accrued interest recorded for this note for the year ended December 31,2016,is

Correct Answer
verified

If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is

Correct Answer
verified

During the year,Spirit Fun had net credit sales of $500,000.Past experience shows that 1.5 percent of the firm's net credit sales result in uncollectible accounts.Determine the adjusting entry needed to recognize the estimated expense for these uncollectible accounts.

Correct Answer
verified

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 $490,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Correct Answer
verified
Debit Uncollectible ...
View Answer

Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,250 per day.If December 31,2016,is on a Monday,the amount of the adjusting entry for accrued wages is:

Correct Answer
verified

On November 1,2016,Paige Turner Publishing received $50,400 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 31,2016,is

Correct Answer
verified

Correct Answer
verified
Debit Depreciation Expense--Eq...
View Answer

On January 1,2016,a firm purchased machinery for $17,000.Depreciation expense for the year ending December 31,2016,given the straight-line method,a 5-year useful life,and a salvage value of $3,000,is

Correct Answer
verified

Exam 12: Accruals, Deferrals, and the Worksheet

Accrued income is income that has been

Correct AnswerverifiedShow Answer

Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day.If the last day of the year is on Wednesday,the adjusting entry to record the accrued wages is:

Correct AnswerverifiedShow Answer

Robin Banks,Inc.owns an armored truck which was purchased for $80,000.The Accumulated Depreci­ation on the truck is $55,000.The book value of the armored truck is

Correct AnswerverifiedShow Answer

The trial balance of Premier Lighting Co.shows Merchandise Inventory of $35,000.Based on a count taken on December 31,merchandise inventory at the end of the year actually totaled $28,000.The adjusting entry to remove the old merchandise inventory balance would be:

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If an account has a debit balance in the Trial Balance section and a debit entry in the Adjustments section,_______________ the two amounts.

Correct AnswerverifiedShow Answer

After both of the entries for the inventory adjustment have been posted,the debit in the Income Summary account represents:

Correct AnswerverifiedShow Answer

On December 1,2016,a firm accepted a 6-month,12 percent note for $5,000 from a customer.The adjusting entry on December 31 to record the interest earned on the note is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Merchandise Inventory account is debited when goods are purchased for resale and credited when goods are sold and delivered to customers.

Correct AnswerverifiedShow Answer

With the accrual basis of accounting,it is appropriate to recognize revenue from a credit sale

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

On November 1,2016,a firm accepted a 4-month,10 percent note for $900 from a customer with an overdue balance.The accrued interest recorded for this note for the year ended December 31,2016,is

Correct AnswerverifiedShow Answer

If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section,the account balance in the Adjusted Trial Balance section of the worksheet is

Correct AnswerverifiedShow Answer

During the year,Spirit Fun had net credit sales of $500,000.Past experience shows that 1.5 percent of the firm's net credit sales result in uncollectible accounts.Determine the adjusting entry needed to recognize the estimated expense for these uncollectible accounts.

Correct AnswerverifiedShow Answer

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 $490,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Correct AnswerverifiedDebit Uncollectible ...View AnswerShow Answer

Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $1,250 per day.If December 31,2016,is on a Monday,the amount of the adjusting entry for accrued wages is:

Correct AnswerverifiedShow Answer

On November 1,2016,Paige Turner Publishing received $50,400 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 31,2016,is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedDebit Depreciation Expense--Eq...View AnswerShow Answer

On January 1,2016,a firm purchased machinery for $17,000.Depreciation expense for the year ending December 31,2016,given the straight-line method,a 5-year useful life,and a salvage value of $3,000,is

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Robin Banks,Inc.owns an armored truck which was purchased for $80,000.The Accumulated Depreciation on the truck is $55,000.The book value of the armored truck is

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Debit Uncollectible ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Debit Depreciation Expense--Eq...
View Answer

Correct Answer
verified