Question : 61) On April 1 of the current year, Wood Services : 1212544

61) On April 1 of the current year, Wood Services received $15,000 for services to be performed evenly over the next 12 months. Wood Services initially recorded the $15,000 as unearned service revenue. The adjusting entry on December 31 of the current year will include a:

A) debit to service revenue for $11,250.

B) debit to service revenue for $3,750.

C) debit to unearned service revenue for $3,750.

D) credit to service revenue for $11,250.

62) On October 1 of the current year, Wood Services received $15,000 for services to be performed evenly over the next 12 months. Wood Services initially recorded the $15,000 as unearned service revenue. The adjusting entry on December 31 of the current year will include a:

A) debit to service revenue for $11,250.

B) debit to service revenue for $3,750.

C) debit to unearned service revenue for $3,750.

D) debit to unearned service revenue for $11,250.

 

63) Net income is reported on the income statement at $40,000. Adjusting entries for accrued revenues of $5,000 and unearned revenue earned during the current period of $2,000 were accidentally omitted. The correct net income is:

A) $33,000.

B) $37,000.

C) $47,000.

D) $43,000.

 

64) Net income is reported on the income statement at $30,000. Adjusting entries for accrued revenues of $2,000 and unearned revenue earned during the current period of $5,500 were accidentally omitted. The correct net income is:

A) $22,500.

B) $37,500.

C) $33,500.

D) $26,500.

 

65) Net income is reported on the income statement at $25,000. Adjusting entries for accrued revenues of $4,000 and unearned revenue earned during the current period of $1,500 were accidentally omitted. The correct net income is:

A) $27,500.

B) $22,500.

C) $19,500.

D) $30,500.

Real Losers, a diet magazine, collected $360,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting.

 

66) By the end of December, how much subscription revenue will Real Losers have earned?

A) $180,000

B) $240,000

C) $360,000

D) $210,000

 

67) What will be the balance in the unearned revenue account on the Real Losers balance sheet on December 31?

A) $150,000

B) $0

C) $180,000

D) $120,000

 

68) If Real Losers records subscription money collected as revenue when received, then what will be the balance in the unearned revenue account on December 31?

A) $150,000

B) $0

C) $180,000

D) $120,000

69) The January 1, 2013, balance in the Prepaid Insurance account was $3,150 and represented the unexpired portion of a two-year policy purchased October 1, 2012. What is the required year-end adjusting journal entry on December 31, 2013?

A)

Dr. Insurance Expense

1,575

    Cr. Prepaid Insurance

    1,575

 

B)

Dr. Insurance Expense

1,800

    Cr. Prepaid Insurance

    1,800

 

C)

Dr. Prepaid Insurance

1,575

    Cr. Insurance Expense

    1,575

 

D)

Dr. Prepaid Insurance

3,150

    Cr. Insurance Expense

    3,150

 

 

70) Employees of Ajax Renovations work Monday through Friday and are paid every Friday for work done that week. The daily payroll is $1,200 and the last payday was Friday December 28. What is the required adjusting journal entry, if any, on December 31?

A)

Dr. Wages Expense

1,200

    Cr. Wages Payable

    1,200

 

B)

Dr. Wages Expense

2,400

    Cr. Wages Payable

    2,400

 

C) No entry is required

D)

Dr. Wages Expense

3,600

    Cr. Wages Payable

    3,600