Question :
54.On November 1, 2016, Paige Turner Publishing received $50,400 in : 1220477
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.
