Question : 46.The balance in the PrepaidRent account before adjustment at the : 1169367

 

 

46.The balance in the PrepaidRent account before adjustment at the end of the year is $12,000, which represents six months rent paid on November 1. The adjusting entry required on December 31 to show the amount of rent that had expired is:   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

$12,000/6 months = $2,000; ($2,000 * 2 months = $4,000)

 

 

 

47.The adjusting entry to account for the use of supplies consists of   

A. a debit to Supplies Expense and a credit to Supplies.

 

B. a debit to Supplies and a credit to Supplies Expense.

 

C. a debit to Supplies and a credit to Accumulated Depreciation.

 

D. a debit to Accumulated Depreciation and a credit to Supplies.

 

 

 

 

48.On December 31, Treats Catering Inc.’s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $400 of supplies actually remain in the supply cabinet. Select the adjusting entry made on December 31, to record the amount of supplies that had been used during the year.   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

$1,000 – $400 = $600 of supplies had been used.

 

 

 

49.During its first year of business, XYZ Inc. purchased $2,400 of supplies. By the end of the year, only $500 of supplies remain in the supply cabinet. Determine the amount to be reported in the Supplies account in the Adjusted Trial Balance section of the worksheet prepared on December 31.   

A. $500

 

B. $1,900

 

C. $2,400

 

D. $2,900

 

 

 

 

50.The adjusting entry to account for the expiration of prepaid insurance consists of   

A. a debit to Insurance Expense and a credit to Prepaid Insurance.

 

B. a debit to Insurance Expense and a credit to Accumulated Depreciation.

 

C. a debit to Prepaid Insurance and a credit to Accumulated Depreciation.

 

D. a debit to Accumulated Depreciation and a credit to Prepaid Insurance.

 

 

 

 

51.The adjusting entry to account for the expiration of prepaid advertising consists of   

A. a debit to Prepaid Advertising and a credit to Advertising Expense.

 

B. a debit to Advertising Expense and a credit to Accumulated Depreciation.

 

C. a debit to Prepaid Advertising and a credit to Accumulated Depreciation.

 

D. a debit to Advertising Expense and a credit to Prepaid Advertising.

 

 

 

 

52.Which of the following statements is not correct?   

A. Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset.

 

B. The book value of a long-term asset is reduced each year as depreciation is recorded.

 

C. Buildings and trucks are examples of long-term assets.

 

D. Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.

 

 

 

 

53.On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:   

A. the Income Statement Debit column.

 

B. the Income Statement Credit column.

 

C. the Balance Sheet Debit column.

 

D. the Balance Sheet Credit column.

 

 

 

 

54.On a worksheet, the adjusted balance of the Depreciation Expense account is extended to:   

A. the Income Statement Debit column.

 

B. the Income Statement Credit column.

 

C. the Balance Sheet Debit column.

 

D. the Balance Sheet Credit column.

 

 

 

 

55.On a worksheet, the adjusted balance of the Supplies account is extended to:   

A. the Income Statement Debit column.

 

B. the Income Statement Credit column.

 

C. the Balance Sheet Debit column.

 

D. the Balance Sheet Credit column.