Question :
81. The entry to adjust for the cost of supplies used : 1234001
81. The entry to adjust for the cost of supplies used during the accounting period is
A. Supplies Expense, debit; Supplies, credit
B. Capital Stock, debit; Supplies, credit
C. Accounts Payable, debit; Supplies, credit
D. Supplies, debit; credit Capital Stock
82. A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday is
A. debit Salaries Payable, $16,000; credit Cash, $16,000
B. debit Salary Expense, $16,000; credit Dividends, $16,000
C. debit Salary Expense, $16,000; credit Salaries Payable, $16,000
D. debit Drawing, $16,000; credit Cash, $16,000
83. The balance in the prepaid insurance account before adjustment at the end of the year is $10,000. If the additional data for the adjusting entry is (1) “the amount of insurance expired during the year is $8,500,” as compared to additional data stating (2) “the amount of unexpired insurance applicable to a future period is $1,500,” for the adjusting entry:
A. the debit and credit amount for (1) would be the same as (2) but the accounts would be different
B. the accounts for (1) would be the same as the accounts for (2) but the amounts would be different
C. the accounts and amounts would be the same for both (1) and (2)
D. there is not enough information given to determine the correct accounts and amounts
84. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed
A. historical cost
B. contra asset
C. book value
D. market value
85. The adjusting entry to record the depreciation of equipment for the fiscal period is
A. debit Depreciation Expense; credit Equipment
B. debit Depreciation Expense; credit Accumulated Depreciation
C. debit Accumulated Depreciation; credit Depreciation Expense
D. debit Equipment; credit Depreciation Expense
86. As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called
A. equipment allocation
B. depreciation
C. accumulation
D. matching
87. The entry to adjust the accounts for wages accrued at the end of the accounting period is
A. Wages Payable, debit; Wages Income, credit
B. Wages Income, debit; Wages Payable, credit
C. Wages Payable, debit; Wages Expense, credit
D. Wages Expense, debit; Wages Payable, credit
88. The supplies account has a balance of $1,000 at the beginning of the year and was debited during the year for $2,800, representing the total of supplies purchased during the year. If $750 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
A. $750
B. $3,550
C. $3,800
D. $3,050
89. A company purchases a one-year insurance policy on June 1 for $840. The adjusting entry on December 31 is
A. debit Insurance Expense, $350 and credit Prepaid Insurance, $350
B. debit Insurance Expense, $280 and credit Prepaid Insurance, $280
C. debit Insurance Expense, $490, and credit Prepaid Insurance, $490.
D. debit Prepaid Insurance, $720, and credit Cash, $720
90. If the prepaid rent account before adjustment at the end of the month has a debit balance of $1,600, representing a payment made on the first day of the month, and if the monthly rent was $800, the amount of prepaid rent that would appear on the balance sheet at the end of the month, after adjustment, is
A. $800
B. $400
C. $2,400
D. $1,600
