Question 1

Match the type of account (a through e)  with the business transactions that follow.
-Received six months of rental payments from a tenant.

Accepted Answer

A)  Prepaid expense
B)  Accrued expense
C)  Unearned revenue
D)  Accrued revenue
E)  None of these choicesF) A) and C)
G) B) and D)

Question 2

Which of the following pairs of accounts could not appear in the same adjusting entry?

Accepted Answer

A)   Fees Earned and Unearned Fees
B)   Interest Income and Interest Expense
C)   Rent Expense and Prepaid Rent
D)   Salaries Payable and Salaries ExpenseE) A) and B)
F) A) and C)

Question 3

Which account would normally not require an adjusting entry?

Accepted Answer

A)   Wages Expense
B)   Accounts Receivable
C)   Accumulated Depreciation
D)   CashE) B) and C)
F) A) and D)

Question 4

Identify the effect (a through h)  that omitting each of the following items would have on the balance sheet.
-A tenant paid six months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month.

Accepted Answer

A)  Assets and owner's equity overstated
B)  Assets and owner's equity understated
C)  Assets overstated and owner's equity understated
D)  Assets understated and owner's equity overstated
E)  Liabilities and owner's equity overstatedF) Liabilities and owner's equity understatedG) Liabilities overstated and owner's equity understatedH) Liabilities understated and owner's equity overstatedI) C) and F)
J) A) and D)

Question 5

On January 1, Newman Company estimated its property tax to be $5,100 for the year.​
(a)How much should the company accrue each month for property taxes?
(b)Calculate the balance in Property Tax Payable as of August 31.
(c)Prepare the adjusting journal entry for September.

Accepted Answer

(a) $425
($5,100/12)
(b) $3,4...

Question 6

Two income statements for Midnight Enterprises are shown below.?
(a) Prepare a vertical analysis of Midnight Enterprises' income statements.
(b) Does the vertical analysis indicate a favorable or unfavorable trend?

Accepted Answer

(a)? <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">  (b) The vertical analysis is indi...

Question 7

Which of the following is an example of a prepaid expense?

Accepted Answer

A)   Supplies
B)   Accounts Receivable
C)   Unearned Subscription Revenue
D)   Unearned FeesE) A) and B)
F) B) and C)

Question 8

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

Accepted Answer

A)   Record payment of wages.
B)   Record wages paid last month.
C)   Record wages paid in advance.
D)   Record wages expense incurred and to be paid next month.E) B) and C)
F) A) and C)

Question 9

The company determines that the interest expense on a note payable for the period ending December 31 is $775. This amount is payable on January 1. Prepare the journal entries required on December 31 and January 1.

Accepted Answer

The answer of The company determines that the interest expense...

Question 10

Match the type of account (a through e)  with the business transactions that follow.
-Electric bill to be paid next month.

Accepted Answer

A)  Prepaid expense
B)  Accrued expense
C)  Unearned revenue
D)  Accrued revenue
E)  None of these choicesF) C) and E)
G) A) and B)

Question 11

Adjusting entries affect at least one

Accepted Answer

A)   income statement account and one balance sheet account
B)   revenue and the dividends account
C)   asset and one owner's equity account
D)   revenue and one owner's equity accountE) A) and C)
F) None of the above

Question 12

On January 2, Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription. The January issue was mailed on January 15. Prepare the necessary entries for the month of January.

Accepted Answer

The second entry can be...

Question 13

Accrued expenses affect ________ on the balance sheet.

Accepted Answer

A)   assets
B)   liabilities
C)   fixed assets
D)   prepaid expensesE) B) and C)
F) A) and B)

Question 14

The supplies account balance on December 31, $4,750; supplies on hand, $960.3. Wages accrued but not paid, $2,700.4. Depreciation of office equipment, $1,650.5. Rent expired during year, $10,800.?

Accepted Answer

The answer of The supplies account balance on December 31,...

Question 15

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 owner's 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 B)
F) None of the above

Question 16

Two income statements for Toby Sam Enterprises are shown below.​Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?

Accepted Answer

A)   increased by 5%
B)   increased by 111%
C)   decreased by 5%
D)   decreased by 111%E) All of the above
F) B) and C)

Question 17

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash2. Prepaid Expenses3. Depreciation Expense4. Accounts Payable5. Accumulated Depreciation6. Equipment

Accepted Answer

1. No2. Ye...

Question 18

Identify the effect (a through h)  that omitting each of the following items would have on the balance sheet.
-Depreciation on equipment was not recorded.

Accepted Answer

A)  Assets and owner's equity overstated
B)  Assets and owner's equity understated
C)  Assets overstated and owner's equity understated
D)  Assets understated and owner's equity overstated
E)  Liabilities and owner's equity overstatedF) Liabilities and owner's equity understatedG) Liabilities overstated and owner's equity understatedH) Liabilities understated and owner's equity overstatedI) None of the above
J) F) and G)

Question 19

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Accepted Answer

A)   depreciation
B)   deferral
C)   accrual
D)   inventoryE) None of the above
F) A) and C)

Question 20

On November 15, Great Designs Company purchased an advertising campaign for the month of December. Great Designs paid cash of $2,700 in advance. The advertising campaign ran in December and was completed on December 31.​
(a) Prepare all necessary journal entries for the advertising campaign for November and December.
(b) Explain why you prepared this/these journal entries.

Accepted Answer

(a)Nov. 15Prepaid Advertising2,700Cash2,...

Exam 3: The Adjusting Process

Two income statements for Midnight Enterprises are shown below.? (a) Prepare a vertical analysis of Midnight Enterprises' income statements. (b) Does the vertical analysis indicate a favorable or unfavorable trend?

Correct Answer
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(a)? (b) The vertical analysis is indi...
View Answer

The company determines that the interest expense on a note payable for the period ending December 31 is $775. This amount is payable on January 1. Prepare the journal entries required on December 31 and January 1.

Correct Answer
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Which of the following pairs of accounts could not appear in the same adjusting entry?

Correct Answer
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The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

Correct Answer
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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
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Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Depreciation on equipment was not recorded.

Correct Answer
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Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -A tenant paid six months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month.

Correct Answer
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Two income statements for Toby Sam Enterprises are shown below.Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?

Correct Answer
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Match the type of account (a through e) with the business transactions that follow. -Electric bill to be paid next month.

Correct Answer
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The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Correct Answer
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Correct Answer
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(a)Nov. 15Prepaid Advertising2,700Cash2,...
View Answer

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash2. Prepaid Expenses3. Depreciation Expense4. Accounts Payable5. Accumulated Depreciation6. Equipment

Correct Answer
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1. No2. Ye...
View Answer

Which of the following is an example of a prepaid expense?

Correct Answer
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The supplies account balance on December 31, $4,750; supplies on hand, $960.3. Wages accrued but not paid, $2,700.4. Depreciation of office equipment, $1,650.5. Rent expired during year, $10,800.?

Correct Answer
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Adjusting entries affect at least one

Correct Answer
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Accrued expenses affect ________ on the balance sheet.

Correct Answer
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On January 1, Newman Company estimated its property tax to be $5,100 for the year. (a)How much should the company accrue each month for property taxes? (b)Calculate the balance in Property Tax Payable as of August 31. (c)Prepare the adjusting journal entry for September.

Correct Answer
verified
(a) $425
($5,100/12)
(b) $3,4...
View Answer

On January 2, Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription. The January issue was mailed on January 15. Prepare the necessary entries for the month of January.

Correct Answer
verified
The second entry can be...
View Answer

Which account would normally not require an adjusting entry?

Correct Answer
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Match the type of account (a through e) with the business transactions that follow. -Received six months of rental payments from a tenant.

Correct Answer
verified

Exam 3: The Adjusting Process

Two income statements for Midnight Enterprises are shown below.? (a) Prepare a vertical analysis of Midnight Enterprises' income statements. (b) Does the vertical analysis indicate a favorable or unfavorable trend?

Correct Answerverified(a)? (b) The vertical analysis is indi...View AnswerShow Answer

The company determines that the interest expense on a note payable for the period ending December 31 is $775. This amount is payable on January 1. Prepare the journal entries required on December 31 and January 1.

Correct AnswerverifiedShow Answer

Which of the following pairs of accounts could not appear in the same adjusting entry?

Correct AnswerverifiedShow Answer

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

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

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -Depreciation on equipment was not recorded.

Correct AnswerverifiedShow Answer

Identify the effect (a through h) that omitting each of the following items would have on the balance sheet. -A tenant paid six months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month.

Correct AnswerverifiedShow Answer

Two income statements for Toby Sam Enterprises are shown below.​Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?

Correct AnswerverifiedShow Answer

Match the type of account (a through e) with the business transactions that follow. -Electric bill to be paid next month.

Correct AnswerverifiedShow Answer

The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is

Correct AnswerverifiedShow Answer

Correct Answerverified(a)Nov. 15Prepaid Advertising2,700Cash2,...View AnswerShow Answer

Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry.1. Cash2. Prepaid Expenses3. Depreciation Expense4. Accounts Payable5. Accumulated Depreciation6. Equipment

Correct Answerverified1. No2. Ye...View AnswerShow Answer

Which of the following is an example of a prepaid expense?

Correct AnswerverifiedShow Answer

The supplies account balance on December 31, $4,750; supplies on hand, $960.3. Wages accrued but not paid, $2,700.4. Depreciation of office equipment, $1,650.5. Rent expired during year, $10,800.?

Correct AnswerverifiedShow Answer

Adjusting entries affect at least one

Correct AnswerverifiedShow Answer

Accrued expenses affect ________ on the balance sheet.

Correct AnswerverifiedShow Answer

On January 1, Newman Company estimated its property tax to be $5,100 for the year.​ (a)How much should the company accrue each month for property taxes? (b)Calculate the balance in Property Tax Payable as of August 31. (c)Prepare the adjusting journal entry for September.

Correct Answerverified(a) $425 ($5,100/12)(b) $3,4...View AnswerShow Answer

On January 2, Safe Motorcycling Monthly received a check for $72 from a subscriber for a 12-month subscription. The January issue was mailed on January 15. Prepare the necessary entries for the month of January.

Correct Answerverified​​ ​ The second entry can be...View AnswerShow Answer

Which account would normally not require an adjusting entry?

Correct AnswerverifiedShow Answer

Match the type of account (a through e) with the business transactions that follow. -Received six months of rental payments from a tenant.

Correct AnswerverifiedShow Answer

Correct Answer
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(a)? (b) The vertical analysis is indi...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Two income statements for Toby Sam Enterprises are shown below.Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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(a)Nov. 15Prepaid Advertising2,700Cash2,...
View Answer

Correct Answer
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1. No2. Ye...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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On January 1, Newman Company estimated its property tax to be $5,100 for the year. (a)How much should the company accrue each month for property taxes? (b)Calculate the balance in Property Tax Payable as of August 31. (c)Prepare the adjusting journal entry for September.

Correct Answer
verified
(a) $425
($5,100/12)
(b) $3,4...
View Answer

Correct Answer
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The second entry can be...
View Answer

Correct Answer
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Correct Answer
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