Question 1

The normal balance of a contra asset account is a debit.

Accepted Answer

A) True 
 B)False

Question 2

Expense items that are acquired and paid for in advance of their use are called ____________________ expenses.

Accepted Answer

The answer of Expense items that are acquired and paid...

Question 3

Land is a long-term asset that is not subject to depreciation.

Accepted Answer

A) True 
 B)False

Question 4

The balances of the ledger accounts for Lance's Landscaping Design on March 31, 2013, and the information needed for adjustments are shown below. Prepare the Trial Balance section, record the adjustments, and complete the worksheet.  Adjustment information:
(a) The supplies were purchased on March 1, 2013. An inventory of supplies showed $300 on hand on March 31, 2013.
(b) The amount of Prepaid Insurance represents a payment made March 1, 2013, for a six-month insurance policy.
(c) The equipment, purchased March 1, 2013, has an estimated useful life of 5 years with no salvage value. The firm uses the straight-line method of depreciation.

Accepted Answer

The answer of The balances of the ledger accounts for...

Question 5

The balances of the ledger accounts for Buffet Services on September 30, 2013, and the information needed for adjustments are shown below. Prepare the Trial Balance section, record the adjustments, and complete the worksheet.  Adjustment information:
(a) The supplies were purchased on September 1, 2013. An inventory of supplies showed $1,200 on hand on September 30, 2013.
(b) The amount of Prepaid Insurance represents a payment made September 1, 2013, for a six-month insurance policy.
(c) The equipment, purchased September 1, 2013, has an estimated useful life of 5 years with no salvage value. The firm uses the straight-line method of depreciation.

Accepted Answer

The answer of The balances of the ledger accounts for...

Question 6

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

Accepted Answer

A)   $600.
B)   $720.
C)   $60.
D)   $12.E) A) and D)
F) None of the above A

Question 7

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 8

Read the description of following adjustments that are required at the end of the accounting period for River Front Repair. Record the necessary adjusting entries on page 2 of a general journal. Omit the descriptions.
A. Prepaid rent for the year on January 1, 2013. Rent expired during the month of January, $7,200.
B. Equipment purchased on January 1, 2013, for $8,100 has an estimated useful life of 5 years with no salvage value. Depreciation is computed using the straight-line method.
C. Purchased supplies for $650 on January 1, 2013. Inventory of supplies was $100 on January 31, 2013.
D. Signed a 12-month contract for $4,800 of prepaid advertising on January 1, 2013.

Accepted Answer

The answer of Read the description of following adjustments that...

Question 9

Read each of the following transactions for Enterprises Security Systems. Determine the accounts and amounts to be debited and credited in the necessary end-of-July adjustments.
A. On July 1, 2013, Enterprises Security Systems, a new firm, bought supplies for $2,300. The $2,300 was debited to the Supplies account. An inventory of supplies at the end of June showed that supplies costing $900 were on hand.
B. On July 1, 2013, the firm bought equipment costing $24,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
C. On July 1, 2013, the firm paid $4,500 rent in advance for a nine-month period. The $4,500 was debited to the Prepaid Rent account.

Accepted Answer

A. Supplies Expense (dr.) $1,4...

Question 10

If equipment has ____________________ value, it can be sold for additional use or for scrap.

Accepted Answer

The answer of If equipment has ____________________ value, it can...

Question 11

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 12

On a balance sheet, Accumulated Depreciation-Equipment is reported

Accepted Answer

A)   as a deduction from the cost of the equipment.
B)   as a liability.
C)   as an expense.
D)   as a deduction from the total of the assets.E) B) and C)
F) All of the above A

Question 13

If an adjustment for expired rent is not recorded, the firm's expenses will be overstated.

Accepted Answer

A) True 
 B)False

Question 14

An accumulated depreciation account has a normal ____________________ balance.

Accepted Answer

The answer of An accumulated depreciation account has a normal...

Question 15

If a worksheet is prepared at the end of the accounting year,

Accepted Answer

A)   preparation of the financial statements is not required.
B)   the adjusting entries do not need to be journalized.
C)   only a balance sheet is required.
D)   the financial statements are prepared using the worksheet data.E) A) and B)
F) B) and C)

Question 16

In the Adjusted Trial Balance section of the worksheet the total debits should equal the total credits.

Accepted Answer

A) True 
 B)False  True

Question 17

If an adjustment is not recorded for supplies used, the firm's assets will be overstated.

Accepted Answer

A) True 
 B)False

Question 18

On the worksheet, the Balance Sheet columns should balance

Accepted Answer

A)   before the net income amount is added to the Balance Sheet Debit column.
B)   after the net income amount is added to the Balance Sheet Debit column.
C)   after the net income amount is added to the Balance Sheet Credit column.
D)   before the net income amount is added to the Balance Sheet Credit column.E) A) and B)
F) A) and C)

Question 19

The adjustments made on the worksheet

Accepted Answer

A)   are posted to the ledger but are not recorded in the journal.
B)   are recorded in the journal but are not posted to the ledger.
C)   need not be entered in the journal or the ledger.
D)   are recorded in the journal and then posted to the general ledger accounts.E) A) and D)
F) C) and D)

Question 20

Which of the following need not be completed separately if a worksheet is prepared?

Accepted Answer

A)   a trial balance
B)   an income statement
C)   a balance sheet
D)   a statement of owner's equityE) None of the above
F) All of the above

Exam 5: Adjustments and the Worksheet

The normal balance of a contra asset account is a debit.

Correct Answer
verified

Expense items that are acquired and paid for in advance of their use are called ____________________ expenses.

Correct Answer
verified

Land is a long-term asset that is not subject to depreciation.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified
A

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
verified

Correct Answer
verified

Correct Answer
verified
A. Supplies Expense (dr.) $1,4...
View Answer

If equipment has ____________________ value, it can be sold for additional use or for scrap.

Correct Answer
verified

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

Correct Answer
verified

On a balance sheet, Accumulated Depreciation-Equipment is reported

Correct Answer
verified
A

If an adjustment for expired rent is not recorded, the firm's expenses will be overstated.

Correct Answer
verified

An accumulated depreciation account has a normal ____________________ balance.

Correct Answer
verified

If a worksheet is prepared at the end of the accounting year,

Correct Answer
verified

In the Adjusted Trial Balance section of the worksheet the total debits should equal the total credits.

Correct Answer
verified
True

If an adjustment is not recorded for supplies used, the firm's assets will be overstated.

Correct Answer
verified

On the worksheet, the Balance Sheet columns should balance

Correct Answer
verified

The adjustments made on the worksheet

Correct Answer
verified

Which of the following need not be completed separately if a worksheet is prepared?

Correct Answer
verified

Exam 5: Adjustments and the Worksheet

The normal balance of a contra asset account is a debit.

Correct AnswerverifiedShow Answer

Expense items that are acquired and paid for in advance of their use are called ____________________ expenses.

Correct AnswerverifiedShow Answer

Land is a long-term asset that is not subject to depreciation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA. Supplies Expense (dr.) $1,4...View AnswerShow Answer

If equipment has ____________________ value, it can be sold for additional use or for scrap.

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

On a balance sheet, Accumulated Depreciation-Equipment is reported

Correct AnswerverifiedA

If an adjustment for expired rent is not recorded, the firm's expenses will be overstated.

Correct AnswerverifiedShow Answer

An accumulated depreciation account has a normal ____________________ balance.

Correct AnswerverifiedShow Answer

If a worksheet is prepared at the end of the accounting year,

Correct AnswerverifiedShow Answer

In the Adjusted Trial Balance section of the worksheet the total debits should equal the total credits.

Correct AnswerverifiedTrue

If an adjustment is not recorded for supplies used, the firm's assets will be overstated.

Correct AnswerverifiedShow Answer

On the worksheet, the Balance Sheet columns should balance

Correct AnswerverifiedShow Answer

The adjustments made on the worksheet

Correct AnswerverifiedShow Answer

Which of the following need not be completed separately if a worksheet is prepared?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A. Supplies Expense (dr.) $1,4...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified