Question 1

Prepare the required entries for the following transactions:

Accepted Answer

The answer of Prepare the required entries for the following...

Question 2

Indicate whether the following error would cause the adjusted trial balance totals to be unequal.If the error would cause the adjusted trial balance totals to be unequal,indicate whether the debit or credit total is higher and by how much.
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The entry for $975 of supplies used during the period was journalized as a debit to Supplies Expense for $795 and credit to Supplies for $975.

Accepted Answer

The total will be un...

Question 3

Generally accepted accounting principles require accrual-basis accounting.

Accepted Answer

A) True 
 B)False

Question 4

Using accrual accounting,revenue is recorded and reported only

Accepted Answer

A)   when cash is received without regard to when the services are rendered
B)   when the services are rendered without regard to when cash is received
C)   when cash is received at the time services are rendered
D)   if cash is received after the services are renderedE) A) and B)
F) C) and D)

Question 5

The account type and normal balance of Unearned Revenue is

Accepted Answer

A)   revenue,credit
B)   expense,debit
C)   liability,credit
D)   asset,debitE) A) and B)
F) B) and D)

Question 6

Adjusting entries always include

Accepted Answer

A)   only income statement accounts
B)   only balance sheet accounts
C)   the cash account
D)   at least one income statement account and one balance sheet accountE) A) and B)
F) None of the above

Question 7

Which of the following is considered to be an accrued expense?

Accepted Answer

A)   a computer technician has installed the latest software updates and was paid on the same day
B)   a computer technician has been paid in advance to install software updates as they become available
C)   a computer technician has just signed an agreement with you regarding pricing for future work
D)   a computer technician has installed the latest software updates,but you have not received an invoice or made paymentE) None of the above
F) A) and B)

Question 8

Zoey Bella Corp.has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.
​

Accepted Answer

$10,000 / ...

Question 9

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a(n)

Accepted Answer

A)   asset
B)   liability
C)   stockholders' equity account
D)   contra liabilityE) A) and B)
F) B) and D)

Question 10

Which one of the accounts below would likely be included in an accrual adjusting entry?

Accepted Answer

A)   Insurance Expense
B)   Prepaid Rent
C)   Interest Expense
D)   Unearned RentE) A) and D)
F) B) and C)

Question 11

Adjusting entries affect only expense and asset accounts.

Accepted Answer

A) True 
 B)False

Question 12

If there is a balance in the prepaid rent account after adjusting entries are made,it represents a(n)

Accepted Answer

A)   deferral
B)   accrual
C)   revenue
D)   liabilityE) All of the above
F) B) and D)

Question 13

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense,$500,and a credit to Equipment,$500.

Accepted Answer

A) True 
 B)False

Question 14

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Accepted Answer

A)   decreases the balance of an stockholders' equity account
B)   increases the balance of a liability account
C)   increases the balance of an asset account
D)   decreases the balance of an expense accountE) A) and C)
F) All of the above

Question 15

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Accepted Answer

$22,800 / ...

Question 16

​Which of the following accounts would likely be included in a deferral adjusting entry?

Accepted Answer

A)   ​Interest Revenue
B)   ​Unearned Revenue
C)   ​Salaries Payable
D)   ​Accounts ReceivableE) B) and D)
F) All of the above

Question 17

The account type and normal balance of Prepaid Expense is

Accepted Answer

A)   revenue,credit
B)   expense,debit
C)   liability,credit
D)   asset,debitE) C) and D)
F) B) and C)

Question 18

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

Accepted Answer

A)   expenses understated and therefore net income overstated
B)   revenues understated and therefore net income understated
C)   expenses understated and therefore net income understated
D)   expenses overstated and therefore net income understatedE) All of the above
F) A) and B)

Question 19

The matching principle supports matching expenses with the related revenues.

Accepted Answer

A) True 
 B)False

Question 20

Explain the difference between accrual basis accounting and cash basis accounting.

Accepted Answer

Accrual basis accounting reports revenue...

Exam 3: The Adjusting Process

The account type and normal balance of Unearned Revenue is

Correct Answer
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Generally accepted accounting principles require accrual-basis accounting.

Correct Answer
verified

Correct Answer
verified
The total will be un...
View Answer

Adjusting entries always include

Correct Answer
verified

The matching principle supports matching expenses with the related revenues.

Correct Answer
verified

Which of the following accounts would likely be included in a deferral adjusting entry?

Correct Answer
verified

Explain the difference between accrual basis accounting and cash basis accounting.

Correct Answer
verified
Accrual basis accounting reports revenue...
View Answer

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

Correct Answer
verified

Zoey Bella Corp.has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.

Correct Answer
verified
$10,000 / ...
View Answer

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Correct Answer
verified
$22,800 / ...
View Answer

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a(n)

Correct Answer
verified

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Correct Answer
verified

Prepare the required entries for the following transactions:

Correct Answer
verified

Adjusting entries affect only expense and asset accounts.

Correct Answer
verified

Which of the following is considered to be an accrued expense?

Correct Answer
verified

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense,$500,and a credit to Equipment,$500.

Correct Answer
verified

The account type and normal balance of Prepaid Expense is

Correct Answer
verified

Using accrual accounting,revenue is recorded and reported only

Correct Answer
verified

Which one of the accounts below would likely be included in an accrual adjusting entry?

Correct Answer
verified

If there is a balance in the prepaid rent account after adjusting entries are made,it represents a(n)

Correct Answer
verified

Exam 3: The Adjusting Process

The account type and normal balance of Unearned Revenue is

Correct AnswerverifiedShow Answer

Generally accepted accounting principles require accrual-basis accounting.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe total will be un...View AnswerShow Answer

Adjusting entries always include

Correct AnswerverifiedShow Answer

The matching principle supports matching expenses with the related revenues.

Correct AnswerverifiedShow Answer

​Which of the following accounts would likely be included in a deferral adjusting entry?

Correct AnswerverifiedShow Answer

Explain the difference between accrual basis accounting and cash basis accounting.

Correct AnswerverifiedAccrual basis accounting reports revenue...View AnswerShow Answer

The adjusting entry to adjust supplies was omitted at the end of the year.This would affect the income statement by having

Correct AnswerverifiedShow Answer

Zoey Bella Corp.has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday. ​

Correct Answerverified$10,000 / ...View AnswerShow Answer

On January 1,DogMart Company purchased a two-year liability insurance policy for $22,800 cash.The purchase was recorded to Prepaid Insurance.Prepare the January 31 adjusting entry.

Correct Answerverified$22,800 / ...View AnswerShow Answer

Prepaid rent,representing rent for the next six months' occupancy,would be reported on the tenant's balance sheet as a(n)

Correct AnswerverifiedShow Answer

If the effect of the debit portion of an adjusting entry is to increase the balance of an expense account,which of the following describes the effect of the credit portion of the entry?

Correct AnswerverifiedShow Answer

Prepare the required entries for the following transactions:

Correct AnswerverifiedShow Answer

Adjusting entries affect only expense and asset accounts.

Correct AnswerverifiedShow Answer

Which of the following is considered to be an accrued expense?

Correct AnswerverifiedShow Answer

A company depreciates its equipment $500 a year.The adjusting entry on December 31 is a debit to Depreciation Expense,$500,and a credit to Equipment,$500.

Correct AnswerverifiedShow Answer

The account type and normal balance of Prepaid Expense is

Correct AnswerverifiedShow Answer

Using accrual accounting,revenue is recorded and reported only

Correct AnswerverifiedShow Answer

Which one of the accounts below would likely be included in an accrual adjusting entry?

Correct AnswerverifiedShow Answer

If there is a balance in the prepaid rent account after adjusting entries are made,it represents a(n)

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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The total will be un...
View Answer

Correct Answer
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Correct Answer
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Which of the following accounts would likely be included in a deferral adjusting entry?

Correct Answer
verified

Correct Answer
verified
Accrual basis accounting reports revenue...
View Answer

Correct Answer
verified

Zoey Bella Corp.has a payroll of $10,000 for a five-day workweek.Its employees are paid each Friday for the five-day workweek.Prepare the adjusting entry on December 31 assuming the year ends on Thursday.

Correct Answer
verified
$10,000 / ...
View Answer

Correct Answer
verified
$22,800 / ...
View Answer

Correct Answer
verified

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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