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Complete the missing items in the Summary of Adjustments chart: Complete the missing items in the Summary of Adjustments chart:

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At the end of the fiscal year, the following adjusting entries were omitted: At the end of the fiscal year, the following adjusting entries were omitted: Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces. Insert 0 if the error does not affect the item. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces. Insert "0" if the error does not affect the item. At the end of the fiscal year, the following adjusting entries were omitted: Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces. Insert 0 if the error does not affect the item. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At the end of the fiscal year, the following adjusting entries were omitted: Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces. Insert 0 if the error does not affect the item. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At the end of the fiscal year, the following adjusting entries were omitted: Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces. Insert 0 if the error does not affect the item. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

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DogMart Company records depreciation for equipment. Depreciation for the period ending December 31 is $1,400 for office equipment and $2,650 for production equipment. Prepare the two entries to record the depreciation.

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​ blured image_TB2281_...

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At the end of the current year, $3,700 fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees.

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Depreciation on equipment for the year is $6,300. (a) Record the journal entry if the company prepares adjustments once a year. (b) Record the journal entry if the company prepares adjustments on a monthly basis.

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(a) blured image_TB228...

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What effect will this adjusting journal entry have on the accounting records? What effect will this adjusting journal entry have on the accounting records? A) increase income B) decrease net income C) decrease expenses D) increase assets


A) increase income
B) decrease net income
C) decrease expenses
D) increase assets

E) B) and C)
F) C) and D)

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The revenue recognition principle requires that the reporting of revenue be included in the period when cash for the service is received.

A) True
B) False

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The accounting principle upon which deferrals and accruals are based is


A) matching
B) cost
C) price-level adjustment
D) conservatism

E) A) and B)
F) A) and C)

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

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(a) blured image_TB2281_00 ​
(b) The vertical analys...

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Bloom's Company pays biweekly salaries of $40,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assuming the next pay period begins on Monday, December 30, journalize the adjusting entry necessary at the end of the fiscal period (December 31). Bloom's Company pays biweekly salaries of $40,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assuming the next pay period begins on Monday, December 30, journalize the adjusting entry necessary at the end of the fiscal period (December 31).

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$40,000/10 days = $4...

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If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry?


A) increases the balance of a contra asset account
B) increases the balance of an asset account
C) decreases the balance of a stockholders' equity account
D) increases the balance of an expense account

E) A) and B)
F) All of the above

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The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. A) Record payment of fees earned. B) Record fees earned at the end of the month. C) Record fees that have not been earned at the end of the month. D) Record payment of fees to be earned.


A) Record payment of fees earned.
B) Record fees earned at the end of the month.
C) Record fees that have not been earned at the end of the month.
D) Record payment of fees to be earned.

E) All of the above
F) C) and D)

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By matching revenue earned during the accounting period to related incurred expenses


A) net income or loss will always be underestimated
B) net income or loss will always be overestimated
C) net income or loss will be properly reported on the income statement
D) net income or loss will not be determined

E) All of the above
F) A) and B)

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Adjusting journal entries are dated on the last day of the period.

A) True
B) False

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The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 for premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $4,100.

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​ blured image_TB2281_...

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


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) C) and D)
F) None of the above

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What effect will this adjustment have on the accounting records? What effect will this adjustment have on the accounting records? A) increase net income B) increase revenues reported for the period C) decrease liabilities D) all of these are true


A) increase net income
B) increase revenues reported for the period
C) decrease liabilities
D) all of these are true

E) C) and D)
F) B) and C)

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A business pays biweekly salaries of $20,000 every other Friday for a ten-day period ending on that day. The last payday of December is Friday, December 27. Assume the next pay period begins on Monday, December 30, and the proper adjusting entry is journalized at the end of the fiscal period (December 31) . The entry for the payment of the payroll on Friday, January 10, includes a


A) debit to Salary Expense of $16,000
B) debit to Salary Expense of $4,000
C) credit to Salaries Payable of $16,000
D) credit to Salaries Payable of $4,000

E) A) and D)
F) All of the above

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REM Consulting is completing the accounting information processing at the end of the fiscal year, December 31. The following trial balances are available. ​ REM Consulting is completing the accounting information processing at the end of the fiscal year, December 31. The following trial balances are available. ​ ​ ​ (a) Reconstruct the adjusting entries and give a brief explanation of each. (b) What is the amount of net income? ​ ​ (a) Reconstruct the adjusting entries and give a brief explanation of each. (b) What is the amount of net income?

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Two income statements for Toby Sam Enterprises are shown below: 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? A) increased by 5% B) increased by 111% C) decreased by 5% D) decreased by 111% Prepare a vertical analysis of Toby Sam Enterprises' income statements. Has operating income increased or decreased as a percentage of revenue?


A) increased by 5%
B) increased by 111%
C) decreased by 5%
D) decreased by 111%

E) A) and D)
F) All of the above

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