Question :
Multiple Choice Questions
28. If Hot Bagel Co. estimates depreciation an automobile : 1229704
Multiple Choice Questions
28. If Hot Bagel Co. estimates depreciation on an automobile to be $578 for the year, the company should make the following adjusting entry:
A. Debit Accumulated Depreciation $578 and credit Depreciation Expense $578.
B. Debit Depreciation Expense $578 and credit Automobile $578.
C. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578.
D. Debit Automobile $578 and credit Depreciation Expense $578.
29. Accumulated Depreciation is:
A. An asset account.
B. A revenue account.
C. A contra-asset account.
D. An expense account.
30. Adjusting entries are prepared:
A. Before financial statements and after a trial balance has been prepared.
B. After a trial balance has been prepared and after financial statements are prepared.
C. After posting but before a trial balance is prepared.
D. Anytime an accountant sees fit to prepare the entries.
31. The normal balance of the Accumulated Depreciation account is:
A. A debit balance.
B. A credit balance.
C. Either a debit balance or a credit balance.
D. There is no normal balance for this account.
32. Unearned revenue may also be called:
A. Net income.
B. Deferred revenue.
C. Unexpired revenue.
D. Services rendered.
33. The adjusting entry to record income taxes at the end of an unprofitable accounting period consists of a:
A. Debit to Income Tax Expense and a credit to Income Tax Payable.
B. Credit to Income Tax Expense and a debit to Income Tax Payable.
C. Credit to Income Tax Receivable and a debit to Income Tax Expense.
D. No adjusting entry is required for income taxes if there are no profits.
34. Which of the following is not considered a basic type of adjusting entry?
A. An entry to convert a liability to a revenue.
B. An entry to accrue unpaid expenses.
C. An entry to convert an asset to an expense.
D. An entry to convert an asset to a liability.
35. The United Shipping Co. made an adjusting entry accruing interest for $800 on a note payable for the month of January. The note required 12% per annum on the principal. The principal amount of the note payable must have been:
A. $7,000.
B. $9,600.
C. $80,000.
D. $10,800.
36. Rose Corp. has a note receivable from Jewel Co for $80,000. The note matures in 5 years and bears interest of 6%. Rose is preparing financial statements for the month of June. Rose should make an adjusting entry:
A. Debiting Interest Revenue for $400 and crediting Interest Receivable for $400.
B. Debiting Interest Receivable for $400 and crediting Interest Revenue for $400.
C. Debiting Interest Revenue for $4,800 and crediting Interest Receivable for $4,800.
D. Crediting Interest Payable for $400 and debiting Interest Expense for $400.
37. Hahn Corp. has three employees. Each earns $600 per week for a five day work week ending on Friday. This month the last day of the month falls on a Wednesday. The company should make an adjusting entry:
A. Debiting Wage Expense for $1,080 and crediting Wages Payable for $1,080.
B. Debiting Wage Expense for $360 and crediting Wages Payable for $360.
C. Crediting Wage Expense for $1,080 and debiting Wages Payable for $1,080.
D. Crediting Wage Expense for $360 and debiting Wages Payable for $360.
