41.The adjusting entry required when amounts previously recorded as unearned revenues are earned includes:
A.A debit to a liability.
B.A debit to an asset.
C.A credit to a liability.
D.A credit to an asset.
42.Adjusting entries:
A.Often include the Cash account.
B.Usually are recorded at the beginning of the accounting period.
C.Always involve at least one income statement account and one balance sheet account.
D.Adjust the balance of revenue and expense accounts to zero.
43.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.
44.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.
B.
C.
D.
45.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.
B.
C.
D.
46.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.
47.On September 1, 2012, 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, 2012?
A.
B.
C.
D.
48.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.
49.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.
50.Eve's Apples opened for business on January 1, 2012, 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, 2012?
A.$9,000.
B.$18,000.
C.$30,000.
D.$48,000.
