Question : 119.The difference between the cost of an asset and the : 1236835

 

119.The difference between the cost of an asset and the accumulated depreciation for that asset is called   

A.Depreciation Expense.

B.Unearned Depreciation.

C.Prepaid Depreciation.

D.Depreciation Value.

E.Book Value.

120.A company purchased a new delivery van at a cost of $45,000 on July 1. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?    

A.$3,250.

B.$3,500.

C.$4,000.

D.$6,500.

E.$7,000.

121.A company’s Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?   

A.$2,700.

B.$2,900.

C.$3,300.

D.$3,500.

E.$3,700.

122.If a company records prepayment of expenses in an asset account, the adjusting entry when all or part of the prepaid asset is used or expired would:   

A.Result in a debit to an expense and a credit to an asset account.

B.Cause an adjustment to prior expense to be overstated and assets to be understated.

C.Cause an accrued liability account to exist.

D.Result in a debit to a liability and a credit to an asset account.

E.Decrease cash.

123.A company recorded 2 days of accrued salaries of $1,400 for its employees on January 31. On February 9, it paid its employees $7,000 for these accrued salaries and for other salaries earned through February 9. The January 31 and February 9 journal entries are:    

A.1/31Salaries Expense1,400

Salaries Payable1,400

2/9Salaries Payable7,000

Salaries Expense1,400

Cash7,000

 

 

B.1/31Salaries Payable1,400

Salaries Expense1,400

2/9Salaries Expense5,600

Salaries Payable1,400

Cash7,000

 

 

C.1/31Salaries Expense1,400

Cash1,400

2/9Salaries Expense7,000

Cash7,000

 

 

D.1/31Salaries Expense1,400

Salaries Payable1,400

2/9Salaries Expense7,000

Cash7,000

 

 

E.1/31Salaries Expense1,400

Salaries Payable1,400

2/9Salaries Expense5,600

Salaries Payable1,400

Cash7,000

 

 

 

 

124.If accrued salaries were recorded on December 31 with a debit to Salaries Expense and a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include:   

A.A debit to Cash and a credit to Salaries Payable.

B.A debit to Cash and a credit to Prepaid Salaries.

C.A debit to Salaries Payable and a credit to Cash.

D.A debit to Salaries Payable and a credit to Salaries Expense.

E.No entry would be necessary on January 5.

125.On December 1, Simpson Marketing Company received $3,600 from a customer for a marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include:   

A.a debit to Earned Fees for $3,600.

B.a debit to Unearned Fees for $1,800.

C.a credit to Unearned Fees for $1,800.

D.a debit to Earned Fees for $1,800.

E.a credit Earned Fees for $3,600.

126.Wilson Company paid insurance premiums for four months in advance on November 1. The balance in the prepaid insurance account before adjustment at the end of the year is $4,800 and no adjustments had been made previously. The adjusting entry required on December 31 is:    

A.Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.

B.Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400.

C.Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200.

D.Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200.

E.Debit Cash, $4,800; Credit Prepaid Insurance, $4,800.

127.What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?   

A.Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250.

B.Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500.

C.Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500.

D.Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750.

E.Debit Cash, $7,750; Credit Prepaid Insurance, $7,750.

128.On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription assuming the company uses a calendar reporting period?    

A.$0.

B.$516.

C.$387.

D.$129.

E.$430.