Question : 111. The following adjusting journal entry was found page 4 of : 1234004

 

111. The following adjusting journal entry was found on page 4 of the journal. Select the best explanation for the entry. 

 

Supplies Expense

360

 

 

             Supplies

 

360

 

????????????????

 

 

 

 

 

 

 A. Adjust supplies inventory to actualB. Record purchase of suppliesC. Adjust supplies expenseD. Record sale of supplies

112. The following adjusting journal entry was found on page 4 of the journal. Select the best explanation for the entry. 

 

Wages Expense

2,555

 

 

           Wages Payable

 

2,555

 

????????????????

 

 

 

 

 

 

 A. Record the payment of wagesB. Record wages to be paid this monthC. Record wages paid in advanceD. Record wages expense incurred and to be paid next month

113. What affect will this adjustment have on the accounting records? 

 

Unearned Revenue

4,500

 

 

             Fees earned

 

4,500

 

 

 

 

 A. Increase net incomeB. Increase revenues reported for the periodC. Decrease liabilitiesD. All are true.

114. What affect will this adjusting journal entry have on the accounting records? 

 

Supplies Expense

678

 

 

            Supplies

 

678

 

 

 

 

 A. Increase incomeB. Decrease net incomeC. Decrease expensesD. Increase assets

115. What affect will the following adjusting journal entry have on the accounting records? 

 

Depreciation Expense

1,500

 

 

            Accumulated Depreciation

 

1,500

 

 

 

 

 A. Increase net incomeB. Increase revenuesC. Decrease expensesD. Decrease net book value

116. How will the following adjusting journal entry affect the accounting equation?. 

 

Unearned Subscriptions

12,000

 

 

             Subscriptions earned

 

12,000

 

 

 

 

 A. Increase assets, increase revenuesB. Increase liabilities, increase revenuesC. Decrease liabilities, increase revenuesD. Decrease liabilities, decrease revenues

117. Which of the following is not true regarding Depreciation? A. Depreciation allocates the cost of a fixed asset over its estimated life.B. Depreciation expense reflects the decrease in market value each year.C. Depreciation is an allocation not a valuation method.D. Depreciation expense does not measure changes in market value.

118. The account type and normal balance of Prepaid Expense is A. revenue, creditB. expense, debitC. liability, creditD. asset, debit

119. The account type and normal balance of Accumulated Depreciation is A. revenue, creditB. expense, debitC. asset, creditD. asset, debit

120. Which of the following is an example of an accrued expense? A. Salary owed but not yet paidB. Fees received but not yet earnedC. Supplies on handD. A two-year premium paid on a fire insurance policy