Question 1

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, 2013, is on a Monday, the amount of the adjusting entry for accrued wages is:

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Question 2

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

Accepted Answer

Prepaid Advertising had a debit balance of $1,500 in the Trial Balance section, which means this amount was initially recorded as a debit in the accounting records. However, in the adjustments section, there is a credit entry of $500, which means that $500 of the initial $1,500 was recognized as an expense and deducted from the prepaid amount. To determine the balance of Prepaid Advertising in the Adjusted Trial Balance section, we need to subtract the $500 adjustment from the initial $1,500 balance, giving us a balance of $1,000 (debit).

Question 3

Rose Bush Nursery purchased a delivery truck for $27,000. The truck is expected to have a useful life of 4 years and a residual value of $1,080. If the truck was purchased on June 1, 2013, what is the amount of depreciation expense for the truck for the year ended December 31, 2013?

Accepted Answer

Depreciation expense = (Cost - Residual value) / Useful life= (27,000 - 1,080) / 4= 25,920 / 4= $6,480Depreciation expense for the year ended December 31, 2013 = 6,480 / 2= $3,240

Question 4

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On October 1, 2013, the firm paid a premium of $5,600 in cash for a 1-year insurance policy. On December 31, 2013, coverage for a period of three months had expired.

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Question 5

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 6

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 7

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 8

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, 2014, 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, 2014.

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Question 9

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, 2013, for this advertising contract is

Accepted Answer

The advertising contract covers 6 months, from September 30, 2013, to March 31, 2014. By December 31, 2013, only 3 months have passed, so the expense for those 3 months is $1,800 / 6 months * 3 months = $900.

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, 2013, the firm owed wages totaling $4,300.

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Question 11

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, 2010, an inventory of supplies showed that items costing $500 were on hand.

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Question 12

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On October 1, 2013, the firm paid a premium of $2,800 in cash for a 1-year insurance policy. On December 31, 2013, coverage for a period of three months had expired.

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Question 13

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2013, the firm owed wages totaling $3,900.

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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. On December 31, 2013, the Notes Payable account had a balance of $12,000. This represented a 3-month, 9 percent note issued on December 1, 2013.

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Question 15

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 16

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, 2013, 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, 2013.

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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. The Supplies account has a balance of $1,300. On December 31, 2013, an inventory of supplies showed that items costing $550 were on hand.

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Question 18

On October 1, 2013, 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, 2013, is

Accepted Answer

The note was accepted on October 1, 2013, and it has a maturity of 4 months. Therefore, it will mature on February 1, 2014 (4 months after October 1).

From October 1 to December 31, three months have passed. To calculate the accrued interest as of December 31, we need to determine the interest for three months.

The formula for simple interest is:

Interest = Principal x Rate x Time

In this case, the principal is $12,000, the rate is 8%, and the time is 3 months (October, November, December).

Therefore, the interest accrued as of December 31, 2013, is:

Interest = $12,000 x 0.08 x 3/12 = $240

The correct answer is C.

Question 19

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2013, the Notes Payable account had a balance of $6,000. This represented a 3-month, 9 percent note issued on December 1, 2013.

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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. 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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Quiz 12: Accruals, Deferrals, and the Worksheet

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, 2013, is on a Monday, the amount of the adjusting entry for accrued wages is:

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

Rose Bush Nursery purchased a delivery truck for $27,000. The truck is expected to have a useful life of 4 years and a residual value of $1,080. If the truck was purchased on June 1, 2013, what is the amount of depreciation expense for the truck for the year ended December 31, 2013?

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On October 1, 2013, the firm paid a premium of $5,600 in cash for a 1-year insurance policy. On December 31, 2013, 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. 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. 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. 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, 2013, 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. On December 31, 2013, the firm owed wages totaling $4,300.

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, 2010, 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 October 1, 2013, the firm paid a premium of $2,800 in cash for a 1-year insurance policy. On December 31, 2013, 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, 2013, the firm owed wages totaling $3,900.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2013, the Notes Payable account had a balance of $12,000. This represented a 3-month, 9 percent note issued on December 1, 2013.

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 Supplies account has a balance of $1,300. On December 31, 2013, an inventory of supplies showed that items costing $550 were on hand.

On October 1, 2013, 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, 2013, is

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. On December 31, 2013, the Notes Payable account had a balance of $6,000. This represented a 3-month, 9 percent note issued on December 1, 2013.