Question : 104. The adjusting entry required to record accrued expenses includes: : 1255829

 

 

104. The adjusting entry required to record accrued expenses includes:

a. A credit to Cash.

b. A debit to an asset.

c. A credit to an asset.

d. A credit to liability.

 

 

105. Yummy Foods purchased a one-year hazard insurance policy on August 1 and recorded the $4,200 premium to prepaid insurance. At its December 31 year-end, Yummy Foods would record which of the following adjusting entries?

a.

Insurance Expense

1,750

 

 

      Prepaid Insurance

 

1,750

 

 

 

 

b.

Prepaid Insurance

1,750

 

 

      Insurance Expense

 

1,750

 

 

 

 

c.

Insurance Expense

1,750

 

 

Prepaid Insurance

2,450

 

 

      Accounts Payable

 

4,200

 

 

 

 

d.

Insurance Expense

2,450

 

 

      Prepaid Insurance

 

2,450

 

 

106. The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000. The current pay period ends on Friday, January 3. Neat Clothes is now preparing financial statements for the year ended December 31. What is the adjusting entry to record accrued salaries at the end of the year?

a.

Salaries Payable

22,400

 

 

     Salaries Expense

 

22,400

 

 

 

 

b.

Salaries Expense

6,400

 

 

     Salaries Payable

 

6,400

 

 

 

 

c.

Salaries Expense

9,600

 

 

     Salaries Payable

 

9,600

 

 

 

 

d.

Salaries Expense

22,400

 

 

     Salaries Payable

 

22,400

 

 

107. On April 1, a $4,800 premium on a one-year insurance policy on equipment was paid and charged to Prepaid Insurance. At the end of the year, the financial statements would report:

a. Insurance Expense, $4,800; Prepaid Insurance $0.

b. Insurance Expense, $3,600; Prepaid Insurance $1,200.

c. Insurance Expense, $3,650; Prepaid Insurance $4,800.

d. Insurance Expense, $1,200; Prepaid Insurance $3,600.

 

 

108. On September 1, 2015, Gold Magazine sold 400 one-year subscriptions for $90 each. The total amount received was credited to Unearned Revenue. What would be the required adjusting entry at December 31, 2015?

a.

Unearned Revenue

36,000

 

 

     Service Revenue

 

36,000

 

 

 

 

b.

Service Revenue

24,000

 

 

     Unearned Revenue

 

24,000

 

 

 

 

c.

Unearned Revenue

24,000

 

 

     Service Revenue

 

24,000

 

 

 

 

d.

Unearned Revenue

12,000

 

 

     Service Revenue

 

12,000

 

 

109. During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries has accrued by the end of the year but has not been paid. The year-end adjusting entry would include which one of the following?

a. Debit to Salaries Expense for $32,000.

b. Credit to Salaries Expense of $8,000.

c. Debit to Salaries Payable for $24,000.

d. Credit to Salaries Payable for $8,000.

 

 

110. At the beginning of December, Global Corporation had $2,000 in supplies on hand. During the month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $800. What is the appropriate month-end adjusting entry?

a. Debit Cash $4,200, credit Supplies $4,200.

b. Debit Supplies $4,200, credit Supplies Expense $4,200.

c. Debit Supplies Expense $4,200, credit Supplies $4,200.

d. Debit Cash $800, credit Supplies $800.

 

 

111. Eve’s Apples opened for business on January 1, 2015, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve’s Prepaid Insurance account as of December 31, 2015?

a. $ 9,000.

b. $18,000.

c. $30,000.

d. $48,000.

 

 

112. A list of all accounts and their balances after updating account balances for adjusting entries is referred to as:

a. A trial balance.

b. An adjusted trial balance.

c. A post-closing trial balance.

d. An accounting trial balance.

 

 

113. An adjusted trial balance:

a. Is a list of all accounts and their balances after adjusting entries.

b. Is a list of all accounts and their balances before adjusting entries.

c. Is a list of all accounts and their balances after closing entries.

d. Is a trial balance adjusted for cash-basis accounting.