Services
Discover
Homeschooling
Ask a Question
Log in
Sign up
Filters
Done
Question type:
Essay
Multiple Choice
Short Answer
True False
Matching
Topic
Business
Study Set
Accounting
Quiz 3: The Adjusting Process
Path 4
Access For Free
Share
All types
Filters
Study Flashcards
Practice Exam
Learn
Question 41
True/False
In the case of Unearned revenue,the adjusting entry at the end of the period includes a debit to Service revenue.
Question 42
True/False
Argyle Designs has a contract to design 20 new dresses for a customer,and will collect a total of $40,000 when the design services are complete.They start on June 1.As of June 30,Argyle has finished 4 of the 20 designs.They will make an adjusting entry at the end of June to accrue $10,000 of service revenue.
Question 43
True/False
At January 1,Smith has $1,200 of supplies on hand.During January,Smith purchases $3,000 worth of new supplies.At the end of the month,a count reveals $500 worth of supplies remaining on the shelves.The adjustment entry needed will include a debit to Supply expense of $3,700.
Question 44
True/False
In the case of Unearned revenue,the cash is received first,and the revenue is earned later.
Question 45
True/False
In the case of a prepaid expense,the adjusting entry required at the end of a period consists of a debit to Prepaid expense.
Question 46
True/False
In the case of a prepaid expense,the adjusting entry required at the end of a period consists of a credit to Prepaid expense.
Question 47
Multiple Choice
Real Losers,a diet magazine,collected $360,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue. -Real Losers,a diet magazine,collected $360,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue.The company uses the accrual method of accounting.What is the balance in the Unearned revenue account at the end of December?
Question 48
True/False
At January 1,Smith has a beginning balance in Unearned revenue of $1,000.During January,he earns $800 of that amount.He also collects $4,000 from a new customer for services to be rendered the following month.As of the end of January,the Unearned revenue account had a balance of $4,800.
Question 49
True/False
Smith signed a contract with a service provider for security services at a rate of $250 per month for the period of January through June.He will pay the service provider the entire amount at the end of June.Smith makes adjusting entries each month.During the month of February,Smith will record total security expense of $500.
Question 50
Multiple Choice
Unearned revenue would be classified as a(n) ________ account.
Question 51
Multiple Choice
Real Losers,a diet magazine,collected $360,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue. -The company uses the accrual method of accounting.By the end of December,how much Subscription revenue has been earned?
Question 52
True/False
Smith borrows $10,000 on a one year Note payable that bears interest at 12% per year.He will repay the principal and interest at the end of the one-year period.Smith makes accrual adjustments and each month,he records interest expense of $1,200.
Question 53
True/False
Smith owns manufacturing equipment that originally cost $12,600 and has an estimated useful life of 7 years.Smith records depreciation monthly in the amount of $100.
Question 54
Multiple Choice
The table below represents Able Company's supplies account.Please supply the missing amount.
Beginning supplies
2
,
000
Supplies purchased
?
Supplies expense
8
,
000
Ending supplies
3
,
000
\begin{array}{|l|r|}\hline\text { Beginning supplies } & 2,000 \\\hline\text { Supplies purchased } & ? \\\hline \text { Supplies expense } & 8,000 \\\hline \text { Ending supplies } & 3,000 \\\hline\end{array}
Beginning supplies
Supplies purchased
Supplies expense
Ending supplies
2
,
000
?
8
,
000
3
,
000
Question 55
True/False
In the case of Unearned revenue,the adjusting entry at the end of the period includes a credit to Service revenue.
Question 56
Multiple Choice
The table below represents Able Company's supplies account.Please supply the missing amount.
Beginning supplies
?
Supplies purchased
7
,
000
Supplies expense
9
,
000
Ending supplies
4
,
000
\begin{array}{|l|r|}\hline\text { Beginning supplies } & ? \\\hline \text { Supplies purchased } & 7,000 \\\hline \text { Supplies expense } & 9,000 \\\hline \text { Ending supplies } & 4,000 \\\hline\end{array}
Beginning supplies
Supplies purchased
Supplies expense
Ending supplies
?
7
,
000
9
,
000
4
,
000
Question 57
True/False
At January 1,Smith has a beginning balance in Prepaid insurance expense of $1,200.Smith pays insurance premiums once a year,and his total premium is $4,800.As of the end of February,the balance in prepaid insurance is $2,000.