Question : 51. Hugh Morris Company pays weekly wages of $10,000 every Friday : 1197572

 

 

51. Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day. If the last day of the year is on Wednesday, the adjusting entry to record the accrued wages is: 

A. debit Wages Expense $6,000; credit Cash $6,000

B. debit Wages Expense $4,000; credit Cash $4,000

C. debit Wages Expense $6,000; credit Wages Payable $6,000

D. debit Wages Expense $6,000; credit Drawing $6,000

 

52. Robin Banks, Inc. owns an armored truck which was purchased for $80,000. The Accumulated Depreci­ation on the truck is $55,000. The book value of the armored truck is 

A. $25,000

B. $80,000

C. $55,000

D. $135,000

 

53. Abe & Anna Split Ice Cream Parlour paid $1,800 cash for a 6-month advertising contract on September 30, 2013. The amount of advertising expense reported on the Income Statement for the year ending December 31, 2013, for this advertising contract is 

A. $900

B. $300

C. $1,800

D. $1,200

 

54. Which of the following statements is correct? 

A. Income that has been earned but not yet received is called accrued income.

B. Unearned Subscription Income is a liability account.

C. Under the accrual basis of accounting, revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received.

D. All of the above statements are correct.

 

55. On November 1, 2013, a firm accepted a 4-month, 10 percent note for $900 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2013, is 

A. $90.

B. $75.

C. $30.

D. $15.

 

56. On April 1, 2013, a firm accepted a 3-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended May 31, 2013, is 

A. $30.

B. $60.

C. $150.

D. $180.

 

57. Accrued income is income that has been 

A. received but not earned.

B. earned but not received.

C. earned and received.

D. budgeted for the fiscal period.

 

58. Which of the following statements is correct? 

A. On the worksheet, the amount of the ending merchandise inventory is shown in the Income Statement Credit column in the account Income Summary and the Balance Sheet Debit column in the account Merchandise Inventory.

B. On the worksheet, the totals of the Income Statement columns should equal the totals of the Balance Sheet columns.

C. On the worksheet, if debits exceed credits in the Adjusted Trial Balance section, the difference represents a net loss.

D. All of the above statements are correct.

 

59. If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a 

A. $900 debit.

B. $500 debit.

C. $500 credit.

D. $900 credit.

 

60. If an account has a credit balance of $700 in the Trial Balance section of a worksheet and there is a credit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is 

A. $900 debit.

B. $500 debit.

C. $500 credit.

D. $900 credit.

 

 

 

61. If an account has a debit balance of $700 in the Trial Balance section of a worksheet and there is a debit entry of $200 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a 

A. $900 debit.

B. $500 debit.

C. $500 credit.

D. $900 credit.

 

62. The net income for an accounting period appears on the worksheet in the 

A. Income Statement Debit column only.

B. Income Statement Credit column only.

C. Income Statement Credit and the Balance Sheet Debit columns.

D. Income Statement Debit and the Balance Sheet Credit columns.

 

63. The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two 

A. only the Income Statement columns.

B. Income Statement or Balance Sheet columns.

C. Balance Sheet and Income Statement Debit columns.

D. Balance Sheet and Income Statement Credit columns.

 

64. The ending merchandise inventory is recorded on the worksheet in the 

A. Income Statement Credit and the Balance Sheet Debit columns.

B. Income Statement Credit column only.

C. Balance Sheet Debit column only.

D. Income Statement Debit column only.

 

65. Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $1,500 and a credit entry of $500 in the adjustments section of the worksheet, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a 

A. $1,000 credit

B. $500 debit

C. $1,000 debit

D. $1,500 debit