Question : 111.Which of the following would not be a proper application : 1237587

 

111.Which of the following would not be a proper application of the concept of materiality by Millridge Corporation?   

A. Transactions involving small dollar amounts are not recorded in Millridge’s accounting records.

 

B. Estimates of supplies on hand are used to determine the supplies expense for the period.

 

C. On a monthly basis, utility bills are expensed in the month paid, rather than in the month in which services are used.

 

D. Immaterial items are ignored in making end-of-period adjusting entries.

 

 

 

 

112.Which statement is true about an adjusted trial balance?   

A. It is prepared before adjusting entries.

 

B. Revenue accounts and expense accounts should not appear on the adjusted trial balance.

 

C. Balance sheet items are presented before income statement items.

 

D. Accumulated depreciation should equal depreciation expense.

 

 

 

 

113.On the adjusted trial balance, retained earnings is:   

A. Stated at the period-end amount.

 

B. Stated at the period-beginning amount.

 

C. Adjusted for all revenues and expenses for the period.

 

D. Adjusted for the period’s dividends.

 

 

 

 

114.Before any month-end adjustments are made, the net income of Bennett Company is $76,000. The following adjustments are necessary: office supplies used, $3,160; services performed for clients but not yet recorded or collected, $3,640; interest accrued on note payable to bank, $3,040. After adjusting entries are made for the items listed above, Bennett Company’s netincomewillbe:   

A. $66,160.

 

B. $78,560.

 

C. $73,440.

 

D. $76,000.

$76,000 – $3,160 + $3,640 – $3,040 = $73,440

 

 

 

115.The accountant for Perfect Painting forgot the following two adjustments at the end of 2015:(a) The entry to record depreciation: $3,000.(b) The entry to record the portion of fees received in advance which have now been earned: $3,000.As a result of these two omissions:   

A. Net income for Perfect Painting for 2015 is overstated.

 

B. Net income for Perfect Painting for 2015 is understated.

 

C. Assets of Perfect Painting are overstated at December 31, 2015.

 

D. Liabilities of Perfect Painting are understated at December 31, 2015.

 

 

 

 

116.Before making month-end adjustments, net income of Cardinal Company was $116,000 for March. Adjusting entries are necessary for the following items:-Depreciation for the month of March: $2,300.-Rental income accrued during March, tenant to pay in April: $800.-Supplies used in March: $100.-Fees earned in March that had been collected in advance: $2,600.After recording these adjustments, net income for March is:   

A. $112,400.

 

B. $113,620.

 

C. $117,000.

 

D. $110,800.

$116,000 – $2,300 + $800 – $100 + $2,600 = $117,000

 

 

 

117.Before any month-end adjustments are made, the net income of Russell Company is $38,000. However, the following adjustments are necessary: office supplies used, $3,160; services performed for clients but not yet recorded or collected, $3,040; interest accrued on a note payable to bank, $3,640. After adjusting entries are made for the items listed above, Russell Company’s netincomewouldbe:   

A. $38,000.

 

B. $34,240.

 

C. $41,160.

 

D. $44,200.

$38,000 – $3,160 + $3,040 – $3,640 = $34,240

 

 

 

118.Before making month-end adjustments, net income of Bobwhite Company was $232,000 for March. Adjusting entries are necessary for the following items:-Depreciation for the month of March: $4,300.-Rental income accrued during March, tenant to pay in April: $900.-Supplies used in March: $300.-Fees earned in March that had been collected in advance: $3,600.After recording these adjustments, net income for March is:   

A. $222,900.

 

B. $227,700.

 

C. $231,900.

 

D. $235,600.

$232,000 – 4,300 + $900 – $300 + $3,600 = $231,900

 

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more