Question 1

The alphabetical listing below includes all of the adjusted account balances of T.O.'s Dance Studio as of December 31,2015.All account balances are normal.
  
Required:
Part a.Prepare the closing entries.
Part b.Prepare the post-closing trial balance as of December 31,2015.
Part c .Prepare the classified balance sheet at December 31,2015.

Accepted Answer

Part a

Part b

Part c

*...

Question 2

Which of the following is performed last at the end of the year?

Accepted Answer

A)   Prepare adjusting entries.
B)   Prepare an adjusted trial balance.
C)   Prepare closing journal entries.
D)   Prepare a post-closing trial balance.E) None of the above
F) B) and C)

Question 3

The purpose of recording an adjusting entry for salaries and wages is to record wages:

Accepted Answer

A)   incurred but not yet paid
B)   paid during the accounting period
C)   paid in the prior accounting period
D)   to be incurred in the next accounting periodE) B) and D)
F) C) and D)

Question 4

The company uses up $5,000 of an existing asset and the company adjusts its accounts accordingly.This is an example of a(n) :

Accepted Answer

A)   accrual adjustment.
B)   closing adjustment.
C)   deferral adjustment.
D)   unethical adjustment.E) B) and D)
F) None of the above

Question 5

Adjustments to revenue accounts at the end of the accounting period are made to adhere to accrual accounting principles,specifically the ______ principle.

Accepted Answer

A)   revenue recognition
B)   expense recognition ("matching") 
C)   cost
D)   contra-accountE) C) and D)
F) A) and D)

Question 6

Wiggly Pet Store had $6,000 of supplies at the end of October.During November,the company bought $2,000 of supplies.At the end of November,the company had $1,000 of supplies remaining.Which of the following statements is not correct?

Accepted Answer

A)   During November, the company used $7,000 of supplies.
B)   Supplies should be reported at $1,000 on the balance sheet.
C)   An expense should be debited for $7,000 in November.
D)   An asset should be debited for $1,000 in November.E) A) and B)
F) A) and C)

Question 7

When will Accounts Receivable be involved in an adjusting entry?

Accepted Answer

A)   Revenues are earned but have not been collected or recorded at the end of the period.
B)   Cash is collected in advance of the revenue earned at the end of the period.
C)   Revenue from cash collected earlier in the period has been earned at the end of the period.
D)   Accounts Receivable will never be used in an adjusting entry. It is only used in daily transactions.E) A) and B)
F) B) and D)

Question 8

An example of an account that could be included in an accrual adjustment for expense is:

Accepted Answer

A)   Accounts Receivable.
B)   Interest Payable.
C)   Prepaid Insurance.
D)   Accumulated Depreciation.E) A) and B)
F) None of the above

Question 9

Which of the following statements is correct regarding the adjustment to record interest accrued on a note payable?

Accepted Answer

A)   Interest on the note payable is classified as an expense since it is a cost of borrowing.
B)   Interest on a note payable should be credited to Notes Payable because it increases the amount of principal to be repaid at the maturity of the note.
C)   Interest on the note payable is classified as a revenue since it is an amount that can be earned on investments.
D)   Interest on the note payable will not accumulate because it is paid at the end of each year.E) B) and C)
F) A) and D)

Question 10

An adjustment to accrue the amount of salaries and wages owed was recorded on December 31.These salaries and wages were paid on the following January 5.The entry on January 5 would include a debit to:

Accepted Answer

A)   Salaries and Wages Expense and Credit to Cash.
B)   Salaries and Wages Payable and Credit to Cash.
C)   Cash and Credit to Salaries and Wages Payable.
D)   Cash and Credit to Salaries and Wages Expense.E) None of the above
F) All of the above

Question 11

The closing entry for dividends involves a debit to ______ and a credit to: (Select all that apply.)

Accepted Answer

A)   Retained Earnings; Dividends
B)   Dividends; Retained Earnings
C)   Dividends; Dividends Payable
D)   Dividends Payable; DividendsE) A) and B)
F) A) and C)

Question 12

After the adjustments have been completed,the adjusted balance in the Interest Payable account represents:

Accepted Answer

A)   total interest that has been paid or accrued during the period
B)   interest on notes receivable owed to the company
C)   interest that has accrued, but has not been paid, at the end of the period
D)   interest that has been prepaid on existing debt at the end of the periodE) All of the above
F) C) and D)

Question 13

A company had calculated net income to be $77,550 based on the unadjusted trial balance.The following adjusting entries were then made for:
-Salaries and wages owed but not yet paid of $790
-Interest earned but not received from investments of $750
-Prepaid insurance premiums amounting to $550 have expired
-Unearned revenue in the amount of $750 has now been earned.
Required:
Determine the amount of net income (loss)that will be reported after the adjustments are recorded.

Accepted Answer

Unadjusted net income - Increase in sala...

Question 14

In an accrual adjustment for expenses incurred but not yet paid:

Accepted Answer

A)   a liability is decreasing since cash is being paid for an expense incurred at the time of the adjustment
B)   the liability recorded when cash was received is increasing as the expense is incurred
C)   the liability recorded when cash was received is decreasing as the expense is incurred
D)   a liability is increasing since cash will be paid in the future due to the expense incurredE) A) and B)
F) A) and C)

Question 15

On December 31,2016,Ditka Inc.had Retained Earnings of $267,800 before its closing entries were prepared and posted.During 2016,the company had service revenue of $168,100 and interest revenue of $81,300.The company used supplies in the amount of $87,900,advertising expenses were $16,400,salaries and wages totaled $18,300,and income tax expense was calculated as $13,700.During the year,the company declared and paid dividends of $6,000.
Required:
Part a.Prepare the closing entries dated December 31,2016.
Part b.Draw a T-account for the Retained Earnings account.Enter the beginning balance into the T-account,post the closing entries,and then determine the ending balance.

Accepted Answer

The answer of On December 31,2016,Ditka Inc.had Retained Earnings of...

Question 16

Which of the following appear on an adjusted trial balance?

Accepted Answer

A)   The ending balance of Retained Earnings
B)   Dividends
C)   Gross profit
D)   Net incomeE) C) and D)
F) A) and B)

Question 17

What is the effect of the December 31 adjusting entry to record $400 of revenues earned but not yet collected?

Accepted Answer

A)   Cash should be decreased by $400 and Sales Revenue should be increased by $400.
B)   Unearned Revenue should be increased by $400 and Sales Revenue should be decreased by $400.
C)   Accounts Receivable should be increased by $400 and Sales Revenue should be increased by $400.
D)   Accounts Receivable should be increased by $400 and Unearned Revenue should be increased by $400.E) A) and B)
F) None of the above

Question 18

A company incurred $5,000 in salaries and wages for employees for the year; $4,500 of these salaries and wages had been paid by the end of the year.Which of the following statements about this situation is correct?

Accepted Answer

A)   Salaries and Wages Payable on the income statement will be $4,500.
B)   Salaries and Wages Expense on the income statement will be $500.
C)   Salaries and Wages Expense on the balance sheet will be $5,000.
D)   Salaries and Wages Payable on the balance sheet will be $500.E) B) and C)
F) All of the above

Question 19

In recording an accrual adjustment to account for revenues earned but not yet collected:

Accepted Answer

A)   an asset is decreased since cash is being paid at the time of the adjustment
B)   the asset recorded when cash was paid is decreased as the revenue is earned
C)   the asset recorded when cash was paid is increased as the revenue is earned
D)   an asset is increased since cash will be collected at a later dateE) B) and C)
F) A) and D)

Question 20

The term,deferral,best describes a situation in which:

Accepted Answer

A)   cash is paid in advance of recognizing an expense.
B)   an expense is recognized before it is paid for with cash.
C)   an expense is recognized after cash has been received.
D)   a liability is established at the time an expense is recognized.E) A) and D)
F) All of the above

Exam 4: Adjustments,financial Statements,and Financial Results

In recording an accrual adjustment to account for revenues earned but not yet collected:

Correct Answer
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After the adjustments have been completed,the adjusted balance in the Interest Payable account represents:

Correct Answer
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An adjustment to accrue the amount of salaries and wages owed was recorded on December 31.These salaries and wages were paid on the following January 5.The entry on January 5 would include a debit to:

Correct Answer
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A company incurred $5,000 in salaries and wages for employees for the year; $4,500 of these salaries and wages had been paid by the end of the year.Which of the following statements about this situation is correct?

Correct Answer
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In an accrual adjustment for expenses incurred but not yet paid:

Correct Answer
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An example of an account that could be included in an accrual adjustment for expense is:

Correct Answer
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Which of the following appear on an adjusted trial balance?

Correct Answer
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Wiggly Pet Store had $6,000 of supplies at the end of October.During November,the company bought $2,000 of supplies.At the end of November,the company had $1,000 of supplies remaining.Which of the following statements is not correct?

Correct Answer
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Correct Answer
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The purpose of recording an adjusting entry for salaries and wages is to record wages:

Correct Answer
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The closing entry for dividends involves a debit to ______ and a credit to: (Select all that apply.)

Correct Answer
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What is the effect of the December 31 adjusting entry to record $400 of revenues earned but not yet collected?

Correct Answer
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The company uses up $5,000 of an existing asset and the company adjusts its accounts accordingly.This is an example of a(n) :

Correct Answer
verified

Adjustments to revenue accounts at the end of the accounting period are made to adhere to accrual accounting principles,specifically the ______ principle.

Correct Answer
verified

The term,deferral,best describes a situation in which:

Correct Answer
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When will Accounts Receivable be involved in an adjusting entry?

Correct Answer
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Which of the following statements is correct regarding the adjustment to record interest accrued on a note payable?

Correct Answer
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Which of the following is performed last at the end of the year?

Correct Answer
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Correct Answer
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Part a

Part b

Part c
*...
View Answer

Correct Answer
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Unadjusted net income - Increase in sala...
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Exam 4: Adjustments,financial Statements,and Financial Results

In recording an accrual adjustment to account for revenues earned but not yet collected:

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After the adjustments have been completed,the adjusted balance in the Interest Payable account represents:

Correct AnswerverifiedShow Answer

An adjustment to accrue the amount of salaries and wages owed was recorded on December 31.These salaries and wages were paid on the following January 5.The entry on January 5 would include a debit to:

Correct AnswerverifiedShow Answer

A company incurred $5,000 in salaries and wages for employees for the year; $4,500 of these salaries and wages had been paid by the end of the year.Which of the following statements about this situation is correct?

Correct AnswerverifiedShow Answer

In an accrual adjustment for expenses incurred but not yet paid:

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An example of an account that could be included in an accrual adjustment for expense is:

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Which of the following appear on an adjusted trial balance?

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Wiggly Pet Store had $6,000 of supplies at the end of October.During November,the company bought $2,000 of supplies.At the end of November,the company had $1,000 of supplies remaining.Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The purpose of recording an adjusting entry for salaries and wages is to record wages:

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The closing entry for dividends involves a debit to ______ and a credit to: (Select all that apply.)

Correct AnswerverifiedShow Answer

What is the effect of the December 31 adjusting entry to record $400 of revenues earned but not yet collected?

Correct AnswerverifiedShow Answer

The company uses up $5,000 of an existing asset and the company adjusts its accounts accordingly.This is an example of a(n) :

Correct AnswerverifiedShow Answer

Adjustments to revenue accounts at the end of the accounting period are made to adhere to accrual accounting principles,specifically the ______ principle.

Correct AnswerverifiedShow Answer

The term,deferral,best describes a situation in which:

Correct AnswerverifiedShow Answer

When will Accounts Receivable be involved in an adjusting entry?

Correct AnswerverifiedShow Answer

Which of the following statements is correct regarding the adjustment to record interest accrued on a note payable?

Correct AnswerverifiedShow Answer

Which of the following is performed last at the end of the year?

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Correct AnswerverifiedPart a Part b Part c *...View AnswerShow Answer

Correct AnswerverifiedUnadjusted net income - Increase in sala...View AnswerShow Answer

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Part a

Part b

Part c
*...
View Answer

Correct Answer
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Unadjusted net income - Increase in sala...
View Answer