Question : Multiple Choice Questions 26.Which of the following need not be completed : 1169365

 

Multiple Choice Questions 

26.Which of the following need not be completed separately if a worksheet is prepared?   

A. a trial balance

 

B. an income statement

 

C. a balance sheet

 

D. a statement of owner’s equity

 

 

 

 

27.When a trial balance is in balance,   

A. adjusting entries are not required.

 

B. the general ledger is free of errors.

 

C. the debit account balances equal the credit account balances.

 

D. the company has earned a net income.

 

 

 

 

28.A total of $3,200 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:   

A. debit Supplies $2,500; credit Supplies Expense $2,500

 

B. debit Supplies Expense $3,200; credit Supplies $3,200

 

C. debit Supplies Expense $700; credit Supplies $700

 

D. debit Supplies Expense $2,500; credit Supplies $2,500

$3,200 – $700 = $2,500

 

 

 

29.A total of $4,000 in supplies was purchased during the year. By the end of the year, the company had used up $1,300 of the supplies. The adjusting entry needed at the end of the year is:   

A. debit Supplies $1,300; credit Supplies Expense $1,300

 

B. debit Supplies Expense $1,300; credit Supplies $1,300

 

C. debit Supplies Expense $2,700; credit Supplies $2,700

 

D. debit Supplies Expense $4,000; credit Supplies $4,000

Since the problem stated that $1,300 had been used up that is the amount that needs to be credited from the supplies account and recognized as an expense.

 

 

 

30.MacGyver Company bought equipment on January 3, 2016, for $34,000. At the time of purchase, the equipment was estimated to have a useful life of six years and a salvage value of $880. Using the straight-line method, the amount of oneyear’s depreciation is   

A. $880.

 

B. $5,520.

 

C. $460.

 

D. $5,667.

($34,000 – $880)/6 years = $5,520 per year

 

 

 

31.Adjusting Entries are   

A. corrections of errors.

 

B. updating entries for previously unrecorded expenses or revenues.

 

C. not required.

 

D. will always affect cash.

 

 

 

 

32.Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2016. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2016?   

A. $260

 

B. $520

 

C. $3,120

 

D. $1,020

($13,500 – $1,020)/48 months = $260 per month * 2 months = $520

 

 

 

33.Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?   

A. Debit Accumulated Depreciation; credit Depreciation Expense

 

B. Debit Depreciation Expense; credit Equipment

 

C. Debit Depreciation Expense; credit Accumulated Depreciation

 

D. Debit Depreciation; credit Depreciation Expense

 

 

 

 

34.On January 1, ABC Catering purchased an oven for $2,000. The oven was expected to last five years and have no salvage value. Select the adjusting entry made on December 31, to record the depreciation of the oven for one year.   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

$2,000/5 years = $400

 

 

 

35.On Jan. 1, 2016 Johnson Consulting purchased a truck for $12,000. The truck was expected to last 60 months and have no salvage value. Calculate the bookvalue of the truck aftertwo years?   

A. $4,800

 

B. $7,200

 

C. $11,600

 

D. $12,000

$12,000/5 years = $2,400; (2 years * $2,400 = $4,800); $12,000 – $4,800 = $7,200