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On a worksheet, the adjusted balance of a contra asset account would be extended to:
 
the Balance Sheet Debit column.
the Balance Sheet Credit column
the Income Statement Debit column.
the Income Statement Credit column.
   
The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents 12 months rent paid on November 1.
The adjusting entry required on December 31 to show the amount of rent that had expired is:
             
Prepaid Rent...........    $          12,000                          
Rent Expense................                                  $          12,000
                                                 
Rent Expense...........   $          12,000                          
Cash................                                    $          12,000
                                                 
Rent Expense........... $          2,000                
Prepaid Rent................                                  $          2,000
                                                 
Rent Expense...........   $          1,000                
Prepaid Rent................                                   $          1,000
   
The unadjusted net income on the income statement was $64,916.
After journalizing and posting the adjusting entries for expired insurance during the year of $3,400 and for supplies
used during the year of $1,480, the adjusted net income is:
 
$69,796.
$64,916.
$60,036
$61,516.
   
The adjusting entry to account for the expiration of prepaid insurance consists of:
 
a debit to Insurance Expense and a credit to Prepaid Insurance
a debit to Insurance Expense and a credit to Accumulated Depreciation.
a debit to Prepaid Insurance and a credit to Accumulated Depreciation.
a debit to Accumulated Depreciation and a credit to Prepaid Insurance.
   
On a worksheet, the adjusting entry to account for depreciation of equipment consists of:
 
a debit to Accumulated Depreciation and a credit to Equipment.
a debit to Depreciation Expense and a credit to Equipment.
a debit to Depreciation Expense and a credit to Accumulated Depreciation
a debit to Accumulated Depreciation and a credit to Depreciation Expense.
   
Which of the following need not be completed separately if a worksheet is prepared?
 
a trial balance
an income statement
a balance sheet
a statement of owner's equity
   
Accumulated Depreciation, Equipment, is shown as:
 
a deduction from assets on the Balance Sheet.
a deduction of Capital on the Statement of Owner's Equity.
an addition to assets on the Balance Sheet
an addition to expenses on the Income Statement.
   
If long-term assets are not adjusted, expenses on the income statement:
 
will not be affected.
will be overstated.
will be understated
may be either overstated or understated.
   
Which of the following statements is not correct?
 
Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the
asset account until the disposition of the asset.
The book value of a long-term asset is reduced each year as depreciation is recorded.
Buildings and trucks are examples of long-term assets.
Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset
   
Equipment costing $27,000 with an estimated salvage value of $2,040 and an estimated life of 4 years was purchased on October 31, 2019.
Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2019?
 
$1,125
$520
$1,040
$1,560
   
The balance in the account Accumulated Depreciation, Equipment will:
 
be reported on the Income Statement.
be reported on the Statement of Owner's Equity.
will be reported on the Balance Sheet
not appear on any financial statement.
   
During its first year of business, XYZ Inc. purchased $1,600 of supplies. By the end of the year, only $500 of supplies remain in the supply cabinet.
Determine the amount to be reported in the Supplies account in the Adjusted Trial Balance section of the worksheet prepared on December 31.
 
$2,100
$1,600
$1,100
$500
   
A consecutive, twelve-month accounting period is called a(n):
 
accrual year.
fiscal year
accounting year.
adjusted year.
   
The adjustments made on the worksheet:
 
are posted to the ledger but are not recorded in the journal.
are recorded in the journal but are not posted to the ledger.
need not be entered in the journal or the ledger.
are recorded in the journal and then posted to the general ledger accounts
   
On a worksheet, the adjusted balance of the Supplies Expense account is extended to:
 
the Income Statement Debit column
the Income Statement Credit column.
the Balance Sheet Debit column.
the Balance Sheet Credit column.
   
On the worksheet, the Balance Sheet columns should balance:
 
before the net income amount is added to the Balance Sheet Debit column.
after the net income amount is added to the Balance Sheet Debit column.
after the net income amount is added to the Balance Sheet Credit column
before the net income amount is added to the Balance Sheet Credit column.
   
On a worksheet, a net loss is:
 
recorded in the Income Statement Debit column.
recorded in the Balance Sheet Debit column
recorded in the Balance Sheet Credit column.
not recorded.
   
MacGyver Company bought equipment on January 3, 2019, for $52,000. At the time of purchase,
the equipment was estimated to have a useful life of five years and a salvage value of $4,000.
Using the straight-line method, the amount of one year's depreciation is:
 
$10,400.
$4,000.
$1,200.
$9,600
   
On November 1, 2019, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space.
The correct adjusting entry on December 31, 2019, to show the amount of rent that had expired would include:
 
debit Rent Expense $400; credit Prepaid Rent $400
debit Rent Expense $800; credit Prepaid Rent $800
debit Prepaid Rent $4,000; credit Rent Expense $4,000
debit Rent Expense $4,800; credit Prepaid Rent $4,800
   
A total of $2,800 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:
 
debit Supplies Expense $2,800; credit Supplies $2,800
debit Supplies Expense $2,100; credit Supplies $2,100
debit Supplies Expense $700; credit Supplies $700
debit Supplies $2,100; credit Supplies Expense $2,100
   
Which of the following entries records the depreciation on equipment for the fiscal year end adjustments
 
Debit depreciation expense
Credit accumulated depreciation
   
If the book value of an asset is $12,500 and the accumulated depreciation is $3,500, the original cost of the asset is
 
$16,000
   
If the prepaid expenses are not adjusted, assets on the balance sheet
 
will be overstated.
   
Which of the following accounts would not appear on the income statement
 
Accumulated depreciation furniture
   
Supplies originally cost $600, but only $150 worth of supplies were used this period. The adjusting entry would be
 
Debit Supplies Expense, $150
Credit Supplies, $150.
   
Accumulated depreciation equipment is shown as
 
a deduction from assets on the Balance Sheet.
   
The unadjusted net income on the income statement was $46,850. After journalizing and posting the adjusting entry for the $2,300
of supplies used during the year the adjusted net income is
 
$44,550
   
Where is the balance of Accumulated Depreciation reported
 
Balance sheet- asset section
   
The partial trial balance shown above is before adjustments. The 4 month insurance policy was purchased for $1,800 on December 1.
What is the adjusting journal entry for insurance on December 31?
 
Debit insurance expense $450 credit prepaid insurance $450
   
The trial balance shown above is before the 2019 yearend adjustments. The company records adjusting entries annually at the end of each year.
The equipment was purchased on January 1,2018 has no salvage value and is expected to have an useful life of 5 years.
After recording the 2019 adjustment for depreciation what is the book value of the equipment
 
$30,000
   
The cost of an asset that is subject to depreciation
 
depreciable cost
   
The difference between the asset account balance and the contra asset account balance is
 
Book value
   
The matching principle in accounting requires the matching of
 
revenue earned with the expenses incurred to produce the revenue
   
What does the credit balance in the Accumulated depreciation account represent
 
the amount of depreciation taken in all years of use to date
   
The trial balance shown above is before the 2019 year end adjustments. The company records adjusting entries annually at the end of each year.
The equipment ($50,000) was purchased on January 1,2018 has no salvage value and is expected to have an useful life of 5 years.
What is the adjusting journal entry for depreciation on December 31,2019
 
Debit depreciation expense $10,000
credit accumulated depreciation $10,000
   
The total assets on the balance sheet was $128,800 before journalizing and posting the adjusting entries for $800 of expired insurance
$2,400 of expired rent and $900 of depreciation. What are the total assets after journalizing and posting the adjustment
 
$124,700
   
On November 1, 2019, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space.
The correct adjusting entry on December 31, 2019, to show the amount of rent that had expired would include:
 
debit Rent Expense $800
credit Prepaid Rent $800

4,800 / 12 months = 400
400 x 2 = 800
   
A total of $2,800 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:
 
Debit supplies expense $2,100
credit supplies $2,100
   
On December 31, Treats Catering Incorporates trial balance shows a $1,000 balance in the supplies account.
However, a physical count determined that only $350 of supplies actually remain in the cabinet.
Select the adjusting entry made on December 31, to record the amount of supplies that had been used during the year
 
Debit supplies expense $650
Credit supplies $650
   
Machinery costing $90,000 with an estimated salvage value of $6,000 and an estimated life of 4 years was purchased on October 31,2019.
Using the straight line depreciation method what is the depreciation expense to be recorded at December 31,2019?
 
$3,500
   
On the worksheet, the Balance Sheet columns should balance
 
after the net income amount is added to the Balance Sheet Credit column
   
On a worksheet, the adjusted balance of a contra asset account would be extended to
 
the Balance Sheet Credit column
   
On a worksheet, a net loss is
 
recorded in the Balance Sheet Debit column
   
Which of the following statement is not correct
 
if an account has a debit balance in the Trial Balance section of the worksheet and there is a credit
entry in the Adjustments section, the debit amount is subtracted when computing the balance to be
shown in the Adjusted Trial Balance section of the worksheet
   
The adjustments made on the worksheet
 
are recorded in the journal and then posted to the general ledger accounts
   
On a balance sheet, Accumulated Depreciation-Equipment is reported
 
as a deduction from the cost of the equipment
   
The book value of long term assets is reported on
 
the balance sheet
   
Which of the following statements is not correct
 
Salvage value is computed by subtracting the accumulated depreciation from the cost of a long term asset
   
On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:
 
the Balance Sheet Credit column
   
On a worksheet, the adjusted balance of the Depreciation Expense account is extended to
 
the Income Statement Debit column
   
On a worksheet, the adjusted balance of the Supplies account is extended to:
 
the Balance Sheet Debit column
   
On a worksheet, the adjusted balance of the Supplies Expense account is extended to:
 
the Income Statement Debit column
   
The balances of the revenue accounts are recorded in the Trial Balance Credit column, the Adjusted Trial Balance Credit column and the Balance Sheet Credit column of the worksheet
 
False
   
Preparation of a worksheet eliminates the necessity of preparing an income statement and a balance sheet
 
False
   
The cost of a long term asset such as equipment is transferred to expenses as it is used during its life
 
True
   
If an adjustment is not recorded for supplies used, the firms assets will be overstated
 
True
   
If an adjustment for expired rent is not recorded the firms expenses will be overstated
 
False
   
The Adjusted Trial Balance section of the worksheet should have equal debit and credit totals
 
True
   
The balance of the owners drawing account is extended to the Income statement debit column of the worksheet
 
False
   
The normal balance of a contra asset account is a debit
 
False
   
Letters are used to label the debit and credit parts of an adjustment on the worksheet
 
True
   
The balance of a liability account is extended to the Balance Sheet credit column of the worksheet
 
True