Question 1

Record the following entries for March 31. Explanations are not required.
a. Interest incurred but not yet paid of $76.
b. Wages incurred but not yet paid of $498.
c. A count of supplies shows a balance of $589 on hand of the original $734.

Accepted Answer

The answer of Record the following entries for March 31....

Question 2

Supplies on hand were $777 of the original $1,034. Calculate the adjusting amount for supplies for the year 2.

Accepted Answer

The answer of Supplies on hand were $777 of the...

Question 3

The adjusted trial balance is prepared before the adjusting entries are completed and posted.

Accepted Answer

The adjusted trial balance is prepared after the adjusting entries are completed and posted to ensure all financial transactions are accounted for correctly.

Question 4

Using the adjusted trial balance, the first financial statement to prepare is the income statement.

Accepted Answer

The adjusted trial balance provides the correct balances of all accounts and is used to prepare financial statements. The income statement is typically the first of the financial statements prepared and shows the revenue, expenses, and net income for a specific period of time.

Question 5

A piece of equipment cost $1,000 and has a salvage value of $200. If it has an 8-year life. Calculate the annual depreciation expense under straight-line depreciation.

Accepted Answer

The answer of A piece of equipment cost $1,000 and...

Question 6

Rick Company bought a 2-year insurance policy on August 1 for $150 per month. Prepare the adjusting entry on December 31.

Accepted Answer

The answer of Rick Company bought a 2-year insurance policy...

Question 7

Supplies on hand were $900 at the start of the year. At the end of the year, it was determined that $350 of supplies had been used. What is the adjusting entry for supplies?

Accepted Answer

The answer of Supplies on hand were $900 at the...

Question 8

A machine with a salvage value of $4,000 and a cost of $36,000 was purchased on January 1, 2012. What is the depreciation expense for 2012 if the company uses straight-line depreciation for 10 years?

Accepted Answer

The answer of A machine with a salvage value of...

Question 9

Journalize the following entries for September 30. Explanations are not required.
a. Expired prepaid rent for the year was $3,400.
b. Supplies used during the year were $1,022.

Accepted Answer

The answer of Journalize the following entries for September 30....

Question 10

Record the following entries for March 31. Explanations are not required.
a. The balance of the prepaid rent account is $1,200 of the original $3,000.
b. The balance of the unearned revenue account is $5,000 of the original $7,500.
c. Depreciation on machinery is 15% of the depreciable cost of $10,000.

Accepted Answer

The answer of Record the following entries for March 31....

Question 11

Journalize the following entries for December 31. Explanations are not required.
a. Income tax incurred but not yet paid for $1,346.
b. Supplies used for $568.
c. Earned subscription revenue of $800 out of $1,000 of unearned revenue.

Accepted Answer

The answer of Journalize the following entries for December 31....

Question 12

During a recent week, incurred wages were $700. However, $280 of the wages had not been paid. Prepare the adjusting entry for wages.

Accepted Answer

The answer of During a recent week, incurred wages were...

Question 13

After preparing the adjusted trial balance, those figures are used to complete the balance sheet only.

Accepted Answer

The figures from the adjusted trial balance are used to prepare not only the balance sheet but also the income statement and, in some cases, other financial statements such as the statement of retained earnings.

Question 14

Journalize the following entries for March 31. Explanations are not required.
a. A machine costing $7,000 with no salvage value was purchased on March 1 and straight-line depreciation is being used. The life is 5 years.
b. Unearned revenue was earned at the rate of $300 per month, starting November 1.
c. Wages incurred but not paid are $2,300.

Accepted Answer

The answer of Journalize the following entries for March 31....

Question 15

A machine costing $45,000 has a life of 12 years. The salvage value is $10,000. It was purchased on February 1. Calculate the depreciation expense for the year.

Accepted Answer

The answer of A machine costing $45,000 has a life...

Question 16

Journalize the following entries for December 31. Explanations are not required.
a. Depreciation expense on office equipment was $639.
b. Used supplies for the year was $1,057.
c. Earned subscription revenue for the year was $875.

Accepted Answer

The answer of Journalize the following entries for December 31....

Question 17

Journalize the following entries for December 31. Explanations are not required.
a. Wages incurred but not yet paid for $256.
b. Interest earned but not yet received for $190.
c. Depreciation expense on machinery for $388.

Accepted Answer

The answer of Journalize the following entries for December 31....

Question 18

Journalize the following entries for December 31. Explanations are not required.
a. Beginning supplies were $2,096. Ending supplies were $923.
b. Beginning interest expense was $0. Accrued interest expense is $777.
c. Wages incurred but not yet paid are $1,135.

Accepted Answer

The answer of Journalize the following entries for December 31....

Question 19

At the beginning of the period, the supplies account has a balance of $500. At the end of the period, the balance in the account was $275. Prepare the adjusting entry.

Accepted Answer

The answer of At the beginning of the period, the...

Question 20

Classify the following items as prepaid expenses (PE), unearned revenue (UR), accrued expenses (AE), or accrued revenue (AR).

Accepted Answer

The answer of Classify the following items as prepaid expenses...

Quiz 3: Adjusting and Closing Entries

Record the following entries for March 31. Explanations are not required. a. Interest incurred but not yet paid of $76. b. Wages incurred but not yet paid of $498. c. A count of supplies shows a balance of $589 on hand of the original $734.

Supplies on hand were $777 of the original $1,034. Calculate the adjusting amount for supplies for the year 2.

The adjusted trial balance is prepared before the adjusting entries are completed and posted.

Using the adjusted trial balance, the first financial statement to prepare is the income statement.

A piece of equipment cost $1,000 and has a salvage value of $200. If it has an 8-year life. Calculate the annual depreciation expense under straight-line depreciation.

Rick Company bought a 2-year insurance policy on August 1 for $150 per month. Prepare the adjusting entry on December 31.

Supplies on hand were $900 at the start of the year. At the end of the year, it was determined that $350 of supplies had been used. What is the adjusting entry for supplies?

A machine with a salvage value of $4,000 and a cost of $36,000 was purchased on January 1, 2012. What is the depreciation expense for 2012 if the company uses straight-line depreciation for 10 years?

Journalize the following entries for September 30. Explanations are not required. a. Expired prepaid rent for the year was $3,400. b. Supplies used during the year were $1,022.

Journalize the following entries for December 31. Explanations are not required. a. Income tax incurred but not yet paid for $1,346. b. Supplies used for $568. c. Earned subscription revenue of $800 out of $1,000 of unearned revenue.

During a recent week, incurred wages were $700. However, $280 of the wages had not been paid. Prepare the adjusting entry for wages.

After preparing the adjusted trial balance, those figures are used to complete the balance sheet only.

A machine costing $45,000 has a life of 12 years. The salvage value is $10,000. It was purchased on February 1. Calculate the depreciation expense for the year.

Journalize the following entries for December 31. Explanations are not required. a. Depreciation expense on office equipment was $639. b. Used supplies for the year was $1,057. c. Earned subscription revenue for the year was $875.

Journalize the following entries for December 31. Explanations are not required. a. Wages incurred but not yet paid for $256. b. Interest earned but not yet received for $190. c. Depreciation expense on machinery for $388.

Journalize the following entries for December 31. Explanations are not required. a. Beginning supplies were $2,096. Ending supplies were $923. b. Beginning interest expense was $0. Accrued interest expense is $777. c. Wages incurred but not yet paid are $1,135.

At the beginning of the period, the supplies account has a balance of $500. At the end of the period, the balance in the account was $275. Prepare the adjusting entry.

Classify the following items as prepaid expenses (PE), unearned revenue (UR), accrued expenses (AE), or accrued revenue (AR).