Question : Multiple Choice Questions 31. Which of the following need not be completed : 1197836

Multiple Choice Questions

31. 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

32. 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.

33. 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

34. MacGyver Company bought equipment on January 3, 2013, 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 one year’s depreciation is 

A. $880

B. $5,520

C. $460

D. $5,667

35. Adjusting Entries are 

A. corrections of errors.

B. needed for expenses that were paid for before or after they were used.

C. not required.

D. will always affect cash.

36. Equipment costing $13,500 with an estimated salvage value of $1,020 and an estimated life of 4 years was purchased on November 1, 2013. Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2013? 

A. $260

B. $520

C. $3,120

D. $1,020

37. 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

38. On October 1, 2013, Jay Walker Company purchased a one-year insurance policy for $660. The correct adjusting entry on December 31, 2013, is 

A. debit Advertising Expense $660; credit Prepaid Advertising $660

B. debit Advertising Expense $495; credit Prepaid Advertising $495

C. debit Prepaid Advertising $55; credit Advertising Expense $55

D. debit Advertising Expense $165; credit Prepaid Advertising $165

39. Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be 

A. $600.

B. $720.

C. $60.

D. $12.

40. On a worksheet, the adjusting entry to account for depreciation of equipment consists of 

A. a debit to Depreciation Expense and a credit to Equipment.

B. a debit to Depreciation Expense and a credit to Accumulated Depreciation.

C. a debit to Equipment and a credit to Accumulated Depreciation.

D. a debit to Accumulated Depreciation and a credit to Equipment.