Question : 163.The difference between the cost of an asset and the : 1258761

 

 

163.The difference between the cost of an asset and the accumulated depreciation for that asset is called   

A.Depreciation Expense.

 

B.Unearned Depreciation.

 

C.Prepaid Depreciation.

 

D.Depreciation Value.

 

Book Value.

 

 

 

 

164.A company recorded 2 days of accrued salaries of $1,400 for its employees on January 31. On February 9, it paid its employees $7,000 for these accrued salaries and for other salaries earned through February 9. The January 31 and February 9 journal entries are:    

A.1/31Salaries Expense1,400

Salaries Payable1,400

2/9Salaries Payable7,000

Salaries Expense1,400

Cash7,000

 

 

B.1/31Salaries Payable1,400

Salaries Expense1,400

2/9Salaries Expense5,600

Salaries Payable1,400

Cash7,000

 

 

C.1/31Salaries Expense1,400

Cash1,400

2/9Salaries Expense7,000

Cash7,000

 

 

D.1/31Salaries Expense1,400

Salaries Payable1,400

2/9Salaries Expense7,000

Cash7,000

 

 

1/31Salaries Expense1,400

Salaries Payable1,400

2/9Salaries Expense5,600

Salaries Payable1,400

Cash7,000

 

 

 

 

 

165.What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?    

A.Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250.

 

Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500.

 

C.Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500.

 

D.Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750.

 

E.Debit Cash, $7,750; Credit Prepaid Insurance, $7,750.

$7,750 – $3,250 = $4,500

 

 

 

166.On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year?   

A.debit Unearned Fees, $1,548; credit Fees Earned, $1,548.

 

B.debit Unearned Fees, $516; credit Fees Earned, $516.

 

C.debit Unearned Fees, $1,161; credit Fees Earned, $1,161.

 

D.debit Unearned Fees, $129; credit Fees Earned, $129.

 

debit Unearned Fees, $387; credit Fees Earned, $387.

$1,548 * 9/36 = $387

 

 

 

167.On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the second year?   

A.debit Unearned Fees, $1,548; credit Fees Earned, $1,548.

 

debit Unearned Fees, $516; credit Fees Earned, $516.

 

C.debit Unearned Fees, $1,161; credit Fees Earned, $1,161.

 

D.debit Unearned Fees, $129; credit Fees Earned, $129.

 

E.debit Unearned Fees, $387; credit Fees Earned, $387.

$1,548 * 12/36 = $516

 

 

 

168.On April 1, Santa Fe, Inc. paid Griffith Publishing Company $1,548 for 36-month subscriptions to several different magazines. Santa Fe debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What adjusting entry should be made by Santa Fe, Inc. for the adjustment on December 31 of the first year assuming the company is using a calendar reporting period and no previous adjustments had been made?    

A.Debit Subscription Expense $516 and credit Prepaid Subscriptions $516.

 

B.Debit Prepaid Subscriptions $516 and credit Subscription Expense $516.

 

C.Debit Subscription Expense $387 and credit Cash $387.

 

D.Debit Unearned Subscriptions $387 and credit Subscription Expense $387.

 

Debit Subscription Expense $387 and credit Prepaid Subscriptions $387.

$1,548/36 = $43 per monthYear 1 = $43 * 9 months expired = $387

 

 

 

169.A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true?    

A.It will have no effect on income.

 

B.It will overstate assets and liabilities by $9,000.

 

C.It will understate net income by $9,000.

 

D.It will understate assets by $9,000.

 

It will understate expenses and overstate net income by $9,000.

 

 

 

 

170.The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:   

A.debit Salary Expense, $9,000; credit Cash, $9,000

 

B.debit Salary Expense, $9,000; credit Fees Earned, $9,000

 

C.debit Salary Expense, $9,000; credit Prepaid Salary, $9,000

 

debit Salary Expense, $9,000; credit Salaries Payable, $9,000

 

E.debit Salaries Payable, $9,000; credit Salary Expense $9,000

 

 

 

 

171.A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?   

A.$16,000

 

B.$15,000

 

C.$2,500

 

$13,500

 

E.$13,333

($16,000 – $1,000)/6 years = $2,500 per year.$16,000 – $2,500 = $13,500

 

 

 

172.If Regent Tax Services’ office supplies account balance on March 1 was $1,400, the company purchased $675 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31?   

A.$675

 

$825

 

C.$1,250

 

D.$1,975

 

E.$525

Beginning Supplies + Supplies Purchased – Ending Supplies = Supplies Used$1,400 + 675 – $1,250 = $825