Question 1

On March 1, 2019, the company paid $6,000 rent in advance for a 12-month period. On December 31, 2019, the company's adjustment for expired rent would include:

Accepted Answer

A)  a $6,000 debit to Prepaid Rent; a $6,000 credit to Rent Expense.
B)  a $1,000 debit to Rent Expense; a $1,000 credit to Prepaid Rent.
C)  a $5,000 debit to Rent Expense; a $5,000 credit to Prepaid Rent.
D)  a $5,000 debit to Prepaid Rent; a $5,000 credit to Rent Expense.E) None of the above
F) All of the above

Question 2

The balance of a liability account is extended to the Balance Sheet Credit column of the worksheet.

Accepted Answer

A) True 
 B)False

Question 3

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:

Accepted Answer

A)  debit Supplies Expense $700; credit Supplies $700
B)  debit Supplies Expense $2,800; credit Supplies $2,800
C)  debit Supplies Expense $2,100; credit Supplies $2,100
D)  debit Supplies $2,100; credit Supplies Expense $2,100E) None of the above
F) A) and B)

Question 4

J. B. Consulting purchased a machine for $6,000 on August 1, 2019. The company expects the useful life of the machine to be 5 years and no salvage value is expected. If the company uses the straight-line method to depreciate the machine, what will be the depreciation adjustment for the year ending December 31, 2019?

Accepted Answer

A)  Debit Depreciation Expense $500 and Credit Equipment $500.
B)  Debit Depreciation Expense $400 and Credit Accumulated Depreciation $400.
C)  Debit Depreciation Expense $500 and Credit Accumulated Depreciation $500.
D)  Debit Accumulated Depreciation $100 and Credit Depreciation Expense $100.E) All of the above
F) None of the above

Question 5

On a worksheet, the adjusted balance of the Supplies Expense account is extended to:

Accepted Answer

A)  the Balance Sheet Debit column.
B)  the Income Statement Debit column.
C)  the Balance Sheet Credit column.
D)  the Income Statement Credit column.E) A) and B)
F) None of the above

Question 6

On a worksheet, the adjusted balance of a contra asset account would be extended to:

Accepted Answer

A)  the Income Statement Debit column.
B)  the Balance Sheet Debit column.
C)  the Income Statement Credit column.
D)  the Balance Sheet Credit column.E) A) and D)
F) A) and B)

Question 7

The adjusting entry to account for the use of supplies consists of:

Accepted Answer

A)  a debit to Supplies and a credit to Accumulated Depreciation.
B)  a debit to Accumulated Depreciation and a credit to Supplies.
C)  a debit to Supplies and a credit to Supplies Expense.
D)  a debit to Supplies Expense and a credit to Supplies.E) B) and D)
F) A) and B)

Question 8

On a worksheet, the adjusted balance of the Depreciation Expense account is extended to:

Accepted Answer

A)  the Income Statement Debit column.
B)  the Balance Sheet Debit column.
C)  the Income Statement Credit column.
D)  the Balance Sheet Credit column.E) A) and D)
F) A) and C)

Question 9

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:

Accepted Answer

A)  $69,796.
B)  $61,516.
C)  $64,916.
D)  $60,036.E) C) and D)
F) A) and B)

Question 10

Preparation of a worksheet eliminates the necessity of preparing an income statement and a balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Accepted Answer

A)  the Balance Sheet Credit column.
B)  the Income Statement Debit column.
C)  the Income Statement Credit column.
D)  the Balance Sheet Debit column.E) All of the above
F) A) and C)

Question 12

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Accepted Answer

The answer of For each of the accounts listed below,...

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

Read the description of following adjustments that are required at the end of the accounting period for Hubbard Repair Services. Determine the account and amount to be debited and the account and amount to be credited.
A. Purchased supplies for $2,000 on November 1, 2019. Inventory of supplies was $600 on November 30, 2019. Record the adjustment for the amount of the supplies that were used during the month of November 2019.
B. Signed a 4-month contract for $2,400 of prepaid advertising on November 1, 2019. Record the adjustment for the amount of the advertising contract that expired during the month of November 2019.
C. Prepaid rent for the year on November 1, 2019. Rent expired during the month of November 2019, $1,500. Record the adjustment on November 30, 2019.
D. Depreciation is computed using the straight-line method. Equipment purchased on November 1, 2019, for $6,000 has an estimated useful life of 5 years with no salvage value. Record the adjustment on November 30, 2019.

Accepted Answer

A. Debit Supplies Expense, $1,400; credi...

Question 15

The unadjusted net income on the income statement was $41,800. After journalizing and posting the adjusting entry for the $600 of prepaid advertising that expired and $1,600 in supplies used during the year, the adjusted net income is:

Accepted Answer

A)  $41,800.
B)  $39,600.
C)  $40,200.
D)  $41,200.E) None of the above
F) B) and D)

Question 16

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

Accepted Answer

A) True 
 B)False

Question 17

Letters are used to label the corresponding debit and credit transactions of an adjustment on the worksheet.

Accepted Answer

A) True 
 B)False

Question 18

The partial worksheet for the Marion Consulting Services for the month ended January 31, 2019, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Accepted Answer

MARION CONSULTING SERVICES
Income Statem...

Question 19

The book value of long-term assets is reported on:

Accepted Answer

A)  the worksheet.
B)  the statement of owner's equity.
C)  the income statement.
D)  the balance sheet.E) All of the above
F) B) and D)

Question 20

Read each of the following transactions for Patel's Repair Services. Determine the accounts and amounts to be debited and credited in the necessary end-of-May adjustments.
A. On May 1, 2019, Patel's Repair Services, a new firm, paid $6,600 rent in advance for a six-month period. The $6,600 was debited to the Prepaid Rent account.
B. On May 1, 2019, the firm bought supplies for $2,000. The $2,000 was debited to the Supplies account. An inventory of supplies at the end of May showed that supplies costing $800 were on hand.
C. On May 1, 2019, the firm bought equipment costing $12,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.

Accepted Answer

A. Rent Expense (dr.) $1,100; ...

Exam 5: Adjustments and the Worksheet

On a worksheet, the adjusted balance of a contra asset account would be extended to:

Correct Answer
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Correct Answer
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A. Rent Expense (dr.) $1,100; ...
View Answer

Preparation of a worksheet eliminates the necessity of preparing an income statement and a balance sheet.

Correct Answer
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On March 1, 2019, the company paid $6,000 rent in advance for a 12-month period. On December 31, 2019, the company's adjustment for expired rent would include:

Correct Answer
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The adjusting entry to account for the use of supplies consists of:

Correct Answer
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On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Correct Answer
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Letters are used to label the corresponding debit and credit transactions of an adjustment on the worksheet.

Correct Answer
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The partial worksheet for the Marion Consulting Services for the month ended January 31, 2019, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Correct Answer
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MARION CONSULTING SERVICES
Income Statem...
View Answer

The unadjusted net income on the income statement was $41,800. After journalizing and posting the adjusting entry for the $600 of prepaid advertising that expired and $1,600 in supplies used during the year, the adjusted net income is:

Correct Answer
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Correct Answer
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The book value of long-term assets is reported on:

Correct Answer
verified

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

Correct Answer
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For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Correct Answer
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On a worksheet, the adjusted balance of the Supplies Expense account is extended to:

Correct Answer
verified

On a worksheet, the adjusted balance of the Depreciation Expense account is extended to:

Correct Answer
verified

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:

Correct Answer
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Correct Answer
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A. Debit Supplies Expense, $1,400; credi...
View Answer

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:

Correct Answer
verified

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.

Correct Answer
verified

The balance of a liability account is extended to the Balance Sheet Credit column of the worksheet.

Correct Answer
verified

Exam 5: Adjustments and the Worksheet

On a worksheet, the adjusted balance of a contra asset account would be extended to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA. Rent Expense (dr.) $1,100; ...View AnswerShow Answer

Preparation of a worksheet eliminates the necessity of preparing an income statement and a balance sheet.

Correct AnswerverifiedShow Answer

On March 1, 2019, the company paid $6,000 rent in advance for a 12-month period. On December 31, 2019, the company's adjustment for expired rent would include:

Correct AnswerverifiedShow Answer

The adjusting entry to account for the use of supplies consists of:

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of the Accumulated Depreciation account is extended to:

Correct AnswerverifiedShow Answer

Letters are used to label the corresponding debit and credit transactions of an adjustment on the worksheet.

Correct AnswerverifiedShow Answer

The partial worksheet for the Marion Consulting Services for the month ended January 31, 2019, is shown below. Using this data, prepare an income statement, a statement of owner's equity, and a balance sheet. The owner made no additional investments during the month.

Correct AnswerverifiedMARION CONSULTING SERVICESIncome Statem...View AnswerShow Answer

The unadjusted net income on the income statement was $41,800. After journalizing and posting the adjusting entry for the $600 of prepaid advertising that expired and $1,600 in supplies used during the year, the adjusted net income is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The book value of long-term assets is reported on:

Correct AnswerverifiedShow Answer

The balance of the owner's drawing account is extended to the Income Statement Debit column of the worksheet.

Correct AnswerverifiedShow Answer

For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit and Credit columns to indicate the effects of each on the account balance.

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of the Supplies Expense account is extended to:

Correct AnswerverifiedShow Answer

On a worksheet, the adjusted balance of the Depreciation Expense account is extended to:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA. Debit Supplies Expense, $1,400; credi...View AnswerShow Answer

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:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The balance of a liability account is extended to the Balance Sheet Credit column of the worksheet.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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A. Rent Expense (dr.) $1,100; ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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MARION CONSULTING SERVICES
Income Statem...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A. Debit Supplies Expense, $1,400; credi...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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