Question : 54.On November 1, 2016, Paige Turner Publishing received $50,400 in : 1168940

 

 

54.On November 1, 2016, Paige Turner Publishing received $50,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2016, is   

A. Debit Subscriptions Income $8,400; credit Unearned Subscriptions $8,400.

 

B. Debit Unearned Subscriptions $8,400; credit Subscriptions Income $8,400.

 

C. Debit Unearned Subscriptions $4,200; credit Subscriptions Income $4,200.

 

D. Debit Unearned Subscriptions $50,400; credit Subscriptions Income $50,400.

 

 

 

55.The Supplies account has a trial balance of $3,136. A year-end inventory shows $1,734 worth of supplies left at the end of the year. The correct adjusting entry is:   

A. debit Supplies Expense $1,734; credit Prepaid Supplies $1,734

 

B. debit Supplies $1,402; credit Supplies Expense $1,402

 

C. debit Supplies Expense $3,136; credit Supplies $3,136

 

D. debit Supplies Expense $1,402; credit Supplies $1,402

 

 

 

56.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

 

 

 

57.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.

 

 

 

58.After both of the entries for the inventory adjustment have been posted, the debit in the Income Summary account represents:   

A. Net Income

 

B. Ending Inventory

 

C. Beginning Inventory

 

D. Cost of Goods Sold

 

 

 

 

59.The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to remove the old merchandise inventory balance would be:   

A. a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.

 

B. a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.

 

C. a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.

 

D. a debit to Income Summary of $35,000 and a credit to Merchandise Inventory for $35,000.

 

 

 

 

60.The trial balance of Marley Motorcycles shows Merchandise Inventory of $80,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $92,000. The adjusting entry to place on the books, the new merchandise inventory balance would be:   

A. a debit to Merchandise Inventory of $12,000 and a credit to Purchases for $12,000.

 

B. a debit to Merchandise Inventory of $92,000 and a credit to Income Summary for $92,000.

 

C. a debit to Purchases of $92,000 and a credit to Income Summary for $92,000.

 

D. a debit to Merchandise Inventory of 80,000 and a credit to Income Summary for $80,000.

 

 

 

 

61.Rose Bush Nursery purchased a delivery truck for $27,000. The truck is expected to have a useful life of 4 years and a residual value of $1,080. If the truck was purchased on June 1, 2016, what is the amount of depreciation expense for the truck for the year ended December 31, 2016?   

A. $3,780

 

B. $1,080

 

C. $6,480

 

D. $3,240

 

 

 

62.Stan Still Stationery Store’s employees are paid every Friday for a five day work week and are paid a total of $1,250 per day. If December 31, 2016, is on a Monday, the amount of the adjusting entry for accrued wages is:   

A. $1,250

 

B. $5,000

 

C. $6,250

 

D. $3,750

 

 

 

63.Millie’s Bakery employees earn $450 a week for a five-day work week and are paid every Friday. If December 31 falls on a Wednesday, calculate the amount that is owed and select the adjusting entry needed to record the owed but unpaid salaries as of December 31.   

A. a debit to Income Summary for $180 and a credit to Salaries Payable for $180.

 

B. a debit to Salaries Expense for $450 and a credit to Salaries Payable for $450.

 

C. a debit to Salaries Expense for $270 and a credit to Salaries Payable for $270.

 

D. a debit to Salaries Payable for $270 and a credit to Salaries Expense for $270.

 

64.On October 1, 2016, a firm accepted a 4-month, 8% note for $12,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2016, is   

A. $960.00.

 

B. $80.00.

 

C. $240.00.

 

D. No accrual is necessary.

 

 

 

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.

 

 

 

66.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, 2016, for this advertising contract is   

A. $900.

 

B. $300.

 

C. $1,800.

 

D. $1,200.