Question 1

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.

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Question 2

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The beginning inventory for a merchandising business was $73,000,and the ending inventory is $66,000.

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Question 3

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The beginning inventory for a merchandising business was $32,000,and the ending inventory is $45,000.

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Question 4

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30,2013.The amount of advertising expense reported on the Income Statement for the year ending December 31,2016,for this advertising contract is
A) $900.
B) $300.
C) $1,800.
D) $1,200.

Accepted Answer

The advertising expense is $1,800 / 6 months = $300 per month. For the year ending December 31, 2016, the advertising expense for this contract is $300 * 3 months = $900.

Question 5

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.During December,the firm received $6,000 in fees in advance and properly recorded the amount as Unearned Fees.An analysis shows that $2,000 applies to services provided in December.

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Question 6

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $4,300.

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Question 7

On October 1,2016,a firm accepted a 4-month,8% note for $12,000 from a customer with an overdue account balance.The accrued interest recorded for this note on December 31,2016,is
A) $960.00.
B) $80.00.
C) $240.00.
D) No accrual is necessary.

Accepted Answer

The calculation for accrued interest on a note is Principal x Rate x Time. In this case, the principal is $12,000, the rate is 8%, and the time period is 3 months (from October 1 to December 31). Therefore, the accrued interest would be $12,000 x 8% x 3/12 = $240.00.

Question 8

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $2,800 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

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Question 9

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The Supplies account has a balance of $1,400.On December 31,2016,an inventory of supplies showed that items costing $500 were on hand.

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Question 10

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $3,900.

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Question 11

Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet,the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a
A) $1,000 credit.
B) $500 debit.
C) $1,000 debit.
D) $1,500 debit.

Accepted Answer

Prepaid Advertising had a debit balance of $1,500 in the Trial Balance section and a credit entry of $500 in the adjustments section. This means that $500 of the original debit balance was used up or consumed during the period, leaving a remaining debit balance of $1,000. Therefore, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a $1,000 debit.

Question 12

Millie's Bakery employees earn $450 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.
A) a debit to Income Summary for $180 and a credit to Salaries Payable for $180.
B) a debit to Salaries Expense for $450 and a credit to Salaries Payable for $450.
C) a debit to Salaries Expense for $270 and a credit to Salaries Payable for $270.
D) a debit to Salaries Payable for $270 and a credit to Salaries Expense for $270.

Accepted Answer

Employees earn $450 a week and are paid every Friday. Since December 31 falls on a Wednesday, there are 3 days of work left in the week that employees have not been paid for.
Therefore, the amount owed would be 3/5 of $450 or $270.
The adjusting entry needed to record the owed but unpaid salaries as of December 31 is a debit to Salaries Expense for $270 and a credit to Salaries Payable for $270. This is because the company has incurred the expense (Salaries Expense) but has not yet paid it out (Salaries Payable).

Question 13

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.Equipment purchased for $52,000 on January 3,2016,has an estimated life of 5 years and an estimated salvage value of $4,500.The firm uses the straight-line method of depreciation.Determine the adjustment for the month ended January 31,2016.

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Question 14

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.

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Question 15

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:
A) $1,250
B) $5,000
C) $6,250
D) $3,750

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Question 16

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 $980,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

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Question 17

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $5,600 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

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Question 18

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the Notes Payable account had a balance of $6,000.This represented a 3-month,9 percent note issued on December 1,2016.

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Question 19

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The Supplies account has a balance of $1,300.On December 31,2016,an inventory of supplies showed that items costing $550 were on hand.

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Question 20

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the Notes Payable account had a balance of $12,000.This represented a 3-month,9 percent note issued on December 1,2016.

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Quiz 12: Accruals, Deferrals, and the Worksheet

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.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The beginning inventory for a merchandising business was $73,000,and the ending inventory is $66,000.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The beginning inventory for a merchandising business was $32,000,and the ending inventory is $45,000.

Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30,2013.The amount of advertising expense reported on the Income Statement for the year ending December 31,2016,for this advertising contract is

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.During December,the firm received $6,000 in fees in advance and properly recorded the amount as Unearned Fees.An analysis shows that $2,000 applies to services provided in December.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $4,300.

On October 1,2016,a firm accepted a 4-month,8% note for $12,000 from a customer with an overdue account balance.The accrued interest recorded for this note on December 31,2016,is

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $2,800 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The Supplies account has a balance of $1,400.On December 31,2016,an inventory of supplies showed that items costing $500 were on hand.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the firm owed wages totaling $3,900.

Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet,the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a

Millie's Bakery employees earn $450 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.

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:

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 $980,000.Past experience shows that 1.2 percent of the firm's net credit sales result in uncollectible accounts.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On October 1,2016,the firm paid a premium of $5,600 in cash for a 1-year insurance policy.On December 31,2016,coverage for a period of three months had expired.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the Notes Payable account had a balance of $6,000.This represented a 3-month,9 percent note issued on December 1,2016.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.The Supplies account has a balance of $1,300.On December 31,2016,an inventory of supplies showed that items costing $550 were on hand.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment.On December 31,2016,the Notes Payable account had a balance of $12,000.This represented a 3-month,9 percent note issued on December 1,2016.