Question : 153.Which of the following assets not depreciated? A.Store fixtures. B.Computers. Land. : 1258760

 

 

153.Which of the following assets is not depreciated?   

A.Store fixtures.

 

B.Computers.

 

Land.

 

D.Buildings.

 

E.Equipment.

 

 

 

 

154.Which of the following does not require an adjusting entry at year-end?   

A.Accrued interest on notes payable.

 

B.Supplies used during the period.

 

Cash invested by stockholder.

 

D.Accrued wages.

 

E.Expired portion of prepaid insurance.

 

 

 

 

155.On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company’s income statement for the first year ended December 31?    

A.$750.

 

B.$5,270.

 

$6,000.

 

D.$6,750.

 

E.$18,000.

$18,000 * 8/24 = $6,000

 

 

 

156.On May 1, Sellers Marketing Company received $1,500 from Franco Marcelli for a marketing campaign effective from May 1 this year to April 30 of the following year. The Cash receipt was recorded as unearned fees and at year-end on December 31, $1,000 of the fees had been earned. The adjusting entry on December 31 would be:   

A.A debit to Unearned Fees and a credit to Cash for $500.

 

B.A debit to Fees Earned and a credit to Unearned Fees for $500.

 

A debit to Unearned Fees and a credit to Fees Earned for $1,000.

 

D.A debit to Fees Earned and a credit to Cash for $1,000.

 

E.A debit to Fees Earned and a credit to Cash for $500.

 

 

 

 

157.Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are:   

A.Intangible expenses.

 

B.Prepaid expenses.

 

C.Unearned expenses.

 

D.Net expenses.

 

Accrued expenses.

 

 

 

 

158.A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:   

A.Debit Unpaid Salaries $600 and credit Salaries Payable $600.

 

Debit Salaries Expense $400 and credit Salaries Payable $400.

 

C.Debit Salaries Expense $600 and credit Salaries Payable $600.

 

D.Debit Salaries Payable $400 and credit Salaries Expense $400.

 

E.Debit Salaries Expense $400 and credit Cash $400.

2 employees * 2 days * $100/employee/day = $400

 

 

 

159.A company pays its employees $4,000 each Friday, which amounts to $800 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:   

A.$4,000.

 

B.$800.

 

C.$1,600.

 

D.$2,400.

 

$3,200.

4 days * $800/day = $3,200

 

 

 

160.The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?   

A.Debit Salaries Payable and credit Salaries Expense.

 

B.Debit Salaries Expense and credit Cash.

 

C.Debit Accrued Salaries and credit Salaries Payable.

 

D.Debit Cash and credit Salaries Expense.

 

Debit Salaries Expense and credit Salaries Payable.

 

 

 

 

161.On January 1, Eastern College received $1,200,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. What amount of tuition revenue should the college recognize on February 28?   

$300,000.

 

B.$600,000.

 

C.$800,000.

 

D.$900,000.

 

E.$1,200,000.

$1,200,000/4 = $300,000

 

 

 

162.An adjusting entry was made on year-end December 31 to accrue salary expense of $1,200. Which of the following entries would be prepared to record the $3,000 payment of salaries in January of the following year?    

A.Salaries Expense3,000

Cash3,000

 

 

B.Salaries Payable3,000

Cash3,000

 

 

C.Salaries Payable1,200

Cash1,200

 

 

D.Salaries Expense1,200

Salaries Payable1,200

 

 

Salaries Payable1,200

Salaries Expense1,800

Cash3,000