Question : 111. A company purchased a new truck at a cost of : 1256794

 

 

111. A company purchased a new truck at a cost of $42,000 on July 1, 2014. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000.  Using the straight- line method, how much depreciation expense will be recorded for the truck for the year ended December 31, 2014? 

A. $3,250

B. $3,500

C. $4,000

D. $6,500

E. $7,000

 

 

112. A company’s Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period? 

A. $2,700

B. $2,900

C. $3,300

D. $3,500

E. $3,700

 

 

113. If a company records prepayment of expenses in an asset account, the adjusting entry would: 

A. Result in a debit to an expense and a credit to an asset account.

B. Cause an adjustment to prior expense to be overstated and assets to be understated.

C. Cause an accrued liability account to exist.

D. Result in a debit to a liability and a credit to an asset account.

E. Decrease cash.

 

 

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

A

1/31

Salaries Expense

1,400

 

 

Salaries Payable

 

1,400

2/9

Salaries Payable

7,000

 

 

Salaries Expense

1,400

 

 

Cash

 

7,000

B.

1/31

Salaries Payable

1,400

 

 

Salaries Expense

 

1,400

2/9

Salaries Expense

5,600

 

 

Salaries Payable

1,400

 

 

Cash

 

7,000

C.

1/31

Salaries Expense

1,400

 

 

Cash

 

1,400

2/9

Salaries Expense

7,000

 

 

Cash

 

7,000

D.

1/31

Salaries Expense

1,400

 

 

Salaries Payable

 

1,400

2/9

Salaries Expense

7,000

 

 

Cash

 

7,000

E.

1/31

Salaries Expense

1,400

 

 

Salaries Payable

 

1,400

2/9

Salaries Expense

5,600

 

 

Salaries Payable

1,400

 

 

Cash

 

7,000

 

 

 

115. If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include: 

A. A debit to Cash and a credit to Salaries Payable.

B. A debit to Cash and a credit to Prepaid Salaries.

C. A debit to Salaries Payable and a credit to Cash.

D. A debit to Salaries Payable and a credit to Salaries Expense.

E. No entry would be necessary on January 5.

 

 

116. On December 31, the balance in the Prepaid Insurance account was $4,500, which is the remaining balance of a 12-month policy purchased on October 31 in the current year. How much did this policy originally cost? 

A. $5,400

B. $3,750

C. $4,909

D. $4,500

E. $6,000

 

 

117. On December 31, the balance in the Prepaid Subscription account was $648. This is the remaining balance of a 12-month subscription purchased on September 30 in the current year. How much did this subscription originally cost? 

A. $72

B. $648

C. $7,776

D. $864

E. $1,512

 

 

118. On December 31, the balance in the Prepaid Advertising account was $176,000, which is the remaining balance of a 12-month advertising campaign purchased on August 31 in the current year. Assuming the cost is spread equally over each month, how much did this advertising campaign cost in total? 

A. $286,000

B. $176,000

C. $264,000

D. $154,000

E. $22,000

 

 

 

 

119. A trial balance prepared after adjustments have been recorded is called a(n): 

A. Balance sheet

B. Adjusted trial balance

C. Unadjusted trial balance

D. Classified balance sheet

E. Unclassified balance sheet

 

 

120. The adjusted trial balance contains information pertaining to: 

A. Asset accounts only.

B. Balance sheet accounts only.

C. Income statement accounts only.

D. All general ledger accounts.

E. Revenue accounts only.