104. The adjusting entry required to record accrued expenses includes:
a. A credit to Cash.
b. A debit to an asset.
c. A credit to an asset.
d. A credit to liability.
105. Yummy Foods purchased a one-year hazard insurance policy on August 1 and recorded the $4,200 premium to prepaid insurance. At its December 31 year-end, Yummy Foods would record which of the following adjusting entries?
a.
Insurance Expense
1,750
Prepaid Insurance
1,750
b.
Prepaid Insurance
1,750
Insurance Expense
1,750
c.
Insurance Expense
1,750
Prepaid Insurance
2,450
Accounts Payable
4,200
d.
Insurance Expense
2,450
Prepaid Insurance
2,450
106. The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000. The current pay period ends on Friday, January 3. Neat Clothes is now preparing financial statements for the year ended December 31. What is the adjusting entry to record accrued salaries at the end of the year?
a.
Salaries Payable
22,400
Salaries Expense
22,400
b.
Salaries Expense
6,400
Salaries Payable
6,400
c.
Salaries Expense
9,600
Salaries Payable
9,600
d.
Salaries Expense
22,400
Salaries Payable
22,400
107. On April 1, a $4,800 premium on a one-year insurance policy on equipment was paid and charged to Prepaid Insurance. At the end of the year, the financial statements would report:
a. Insurance Expense, $4,800; Prepaid Insurance $0.
b. Insurance Expense, $3,600; Prepaid Insurance $1,200.
c. Insurance Expense, $3,650; Prepaid Insurance $4,800.
d. Insurance Expense, $1,200; Prepaid Insurance $3,600.
108. On September 1, 2015, Gold Magazine sold 400 one-year subscriptions for $90 each. The total amount received was credited to Unearned Revenue. What would be the required adjusting entry at December 31, 2015?
a.
Unearned Revenue
36,000
Service Revenue
36,000
b.
Service Revenue
24,000
Unearned Revenue
24,000
c.
Unearned Revenue
24,000
Service Revenue
24,000
d.
Unearned Revenue
12,000
Service Revenue
12,000
109. During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include which one of the following?
a. Debit to Salaries Expense for $32,000.
b. Credit to Salaries Expense of $8,000.
c. Debit to Salaries Payable for $24,000.
d. Credit to Salaries Payable for $8,000.
110. At the beginning of December, Global Corporation had $2,000 in supplies on hand. During the month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $800. What is the appropriate month-end adjusting entry?
a. Debit Cash $4,200, credit Supplies $4,200.
b. Debit Supplies $4,200, credit Supplies Expense $4,200.
c. Debit Supplies Expense $4,200, credit Supplies $4,200.
d. Debit Cash $800, credit Supplies $800.
111. Eve’s Apples opened for business on January 1, 2015, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve’s Prepaid Insurance account as of December 31, 2015?
a. $ 9,000.
b. $18,000.
c. $30,000.
d. $48,000.
112. A list of all accounts and their balances after updating account balances for adjusting entries is referred to as:
a. A trial balance.
b. An adjusted trial balance.
c. A post-closing trial balance.
d. An accounting trial balance.
113. An adjusted trial balance:
a. Is a list of all accounts and their balances after adjusting entries.
b. Is a list of all accounts and their balances before adjusting entries.
c. Is a list of all accounts and their balances after closing entries.
d. Is a trial balance adjusted for cash-basis accounting.
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