Question : 139.A company purchased new furniture at a cost of $16,000 : 1236837

139.A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?    

A.$16,000

B.$15,000

C.$2,500

D.$13,500

E.$13,333

140.The balances in Sanchez Accounting Services’ office supplies account on February 1 and February 28 were $1,200 and $375, respectively. If the office supplies expense for the month is $1,900, what amount of office supplies was purchased during February?    

A.$1,075

B.$1,500

C.$1,525

D.$2,325

E.$3,100

141.If Regent Tax Services’ office supplies account balance on March 1 was $1,400, the company purchased $675 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the adjusting entry for office supplies on March 31?   

A.$675

B.$825

C.$1,250

D.$1,975

E.$525

142.A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?    

A.Debit Supplies Expense $1,250 and credit Supplies $1,250.

B.Debit Prepaid Supplies $850 and credit Supplied Expense $850.

C.Debit Supplies Expense $1,250 and credit Supplies $2,100.

D.Debit Supplies $1,250 and credit Cash $1,250.

E.Debit Supplies Expense $850 and credit Supplies $850.

143.Which of the following statements is incorrect?   

A.An income statement reports revenues earned less expenses incurred.

B.An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments.

C.Interim financial reports can be based on one-month or three-month accounting periods.

D.The fiscal year is any 12 consecutive months (or 52 weeks) used by a business as its annual accounting period.

E.Property, plant, and equipment are referred to as plant assets.

144.A trial balance prepared after adjustments have been recorded is called a(n):    

A.Balance sheet.

B.Adjusted trial balance.

C.Unadjusted trial balance.

D.Classified balance sheet.

E.Unclassified balance sheet.

145.A trial balance prepared before any adjustments have been recorded is:   

A.An adjusted trial balance.

B.Used to prepare financial statements.

C.An unadjusted trial balance.

D.Correct with respect to proper balance sheet and income statement amounts.

E.Only prepared once a year.

146.The adjusted trial balance contains information pertaining to:   

A.Asset accounts only.

B.Balance sheet accounts only.

C.Income statement accounts only.

D.All general ledger accounts.

E.Revenue accounts only.

147.Financial statements are typically prepared in the following order:   

A.Balance sheet, statement of owner’s equity, income statement.

B.Statement of owner’s equity, balance sheet, income statement.

C.Income statement, balance sheet, statement of owner’s equity.

D.Income statement, statement of owner’s equity, balance sheet.

E.Balance sheet, income statement, statement of owner’s equity.

148.A balance sheet that places the assets above the liabilities and equity is called a(n):   

A.Report form balance sheet.

B.Account form balance sheet.

C.Classified balance sheet.

D.Unadjusted balance sheet.

E.Unclassified balance sheet.