111. The following adjusting journal entry was found on page 4 of the journal. Select the best explanation for the entry.
Supplies Expense
360
Supplies
360
????????????????
A. Adjust supplies inventory to actualB. Record purchase of suppliesC. Adjust supplies expenseD. Record sale of supplies
112. The following adjusting journal entry was found on page 4 of the journal. Select the best explanation for the entry.
Wages Expense
2,555
Wages Payable
2,555
????????????????
A. Record the payment of wagesB. Record wages to be paid this monthC. Record wages paid in advanceD. Record wages expense incurred and to be paid next month
113. What affect will this adjustment have on the accounting records?
Unearned Revenue
4,500
Fees earned
4,500
A. Increase net incomeB. Increase revenues reported for the periodC. Decrease liabilitiesD. All are true.
114. What affect will this adjusting journal entry have on the accounting records?
Supplies Expense
678
Supplies
678
A. Increase incomeB. Decrease net incomeC. Decrease expensesD. Increase assets
115. What affect will the following adjusting journal entry have on the accounting records?
Depreciation Expense
1,500
Accumulated Depreciation
1,500
A. Increase net incomeB. Increase revenuesC. Decrease expensesD. Decrease net book value
116. How will the following adjusting journal entry affect the accounting equation?.
Unearned Subscriptions
12,000
Subscriptions earned
12,000
A. Increase assets, increase revenuesB. Increase liabilities, increase revenuesC. Decrease liabilities, increase revenuesD. Decrease liabilities, decrease revenues
117. Which of the following is not true regarding Depreciation? A. Depreciation allocates the cost of a fixed asset over its estimated life.B. Depreciation expense reflects the decrease in market value each year.C. Depreciation is an allocation not a valuation method.D. Depreciation expense does not measure changes in market value.
118. The account type and normal balance of Prepaid Expense is A. revenue, creditB. expense, debitC. liability, creditD. asset, debit
119. The account type and normal balance of Accumulated Depreciation is A. revenue, creditB. expense, debitC. asset, creditD. asset, debit
120. Which of the following is an example of an accrued expense? A. Salary owed but not yet paidB. Fees received but not yet earnedC. Supplies on handD. A two-year premium paid on a fire insurance policy