ACCT 2103 Chapter 4. Quiz

on december 31st 2018 interest of 700 is owed on a bank loan that will not be paid until june 30th,2019. what is the necessary adjusting journal entry on december 31st 2018:

Debit interest expense and credit interest payable for 700

Amortization is the expensing of:

Long-term assets that lack physical substance

at the end of the month adjusting the journal entry to record the USE OF SUPPLIES to a DEBIT to:

Supplies expense and a credit to Supplies

the book value of equipment is equal to which f the following:

cost of equipment less the related accumulated depreciation.

Which of the following entries records the adjustment for revenue earned, but not yet collected?

debit accounts receivable and credit sales revenue

freshly company purchased an investment security on september 1 that will pay 1200 interest on november 30th. which of the following adjusting entries would be made on september 30th

debit interest receivable and credit interest revenue for 400 dollars.

On january 1st, the sleepy monk coffee shop paid 24000 for a full year of rent beginning on january 1. the rent payment was appropraitely recorded in the cash and prepaid rent accounts. if financial statements are prepared on january 31st, the journal entry to record this adjustment would be:

debit rent expense and credit prepaid rent for 2000

Angela is a tenant of bruce, on july 1st angela paid 3600 for 3 months of rent. On july 31st, bruces adjusting entries will include a debit to:

deffered revenue for 1200 and a credit rent revenue for 1200

The process of allocating the cost of buildings equipment, and vehicles to the accounting periods in which they are used is called :

depreciation

which of the following accounts will have a zero balance on a post-closing trial balance

dividends

Adjustments to expense accounts at the end of the accounting period are mad eto adhere to accrual accounting principles specifically The (blank) principles

expense recognition (matching)

which is the first financial statement that should be prepared after the adjusted trial balance has been prepared?

income statement

the adjusting entry to record interest owed on obligations at the end of the accounting period includes a debit to?

interest expense and credit to interest payable.

after the adjustments have been completed , the adjusted balance in the supplies account represents the cost of supplies.

on hand at the end of the accounting period

Angela is a tenant of Bruce. On March 1st. angela paid 2400 dollars for 3 months of rent. On March 31st. angelas adjusting entries will include a debit to

rent expense for 800 and credit prepaid rent for 800

Bird company incurred 10000 in salaries and wages for employees for the year; 9000 of these salaries and wages have been paid by the end of the year. Which of the following statements about the situation is correct:

salaries and wages payable on the balance sheet will be 1000

at the end of the accounting period

temporary accounts are closed; permanent accounts are not

Closing Journal Entries

transfer net income or loss and dividends to retained earnings

closing entries

cause the revenue and expense accounts to have zero balances

Parker inc had a beginning balance in its retained earnings account of 192,800. during the year the company declared and paid a 2350 dividend at the end of the year , it reported retained earnings of 199930. the companies net service for the year

2500

ridge crest company has beginning retained earnings of 11000, ending retained earnings of 16000, and net income of 7500, what was the amount of dividends declared during the year.

2500

what are the effects on the accounting equation from the adjustment for income tax expense accrued , but not paid, at the end of the accounting period?

Total liabilities and total stockholders equity will increase.

If an expense has been incurred but will be paid later, then:

a liability account is created or increased and an expense is recorded

a company reports equipment on its classified balance sheet. the balance of accumulated depreciation appears on classified balance sheet as:

a subtraction to arrive at the amount of Equipment, net.

at the end of the accounting period

adjusting entries are typically prepared:

the balance in the prepaid insurance account after the adjusting entries have been recorded represents the:

amount of the insurance prepayment that remains to benefit future payments.

After the adjustments have been completed, the adjusted balance in the deferred revenue represents the:

amount of the sales or services still owed to the customer.

When existing assets are used up in the ordinary course of business:

an expense is recorded.

before the closing entries are prepared , the retained earnings balance in the adjusted trial balance is equal to the balance of that account:

at the beginning of the period.

accumulated depreciation appears on the:

balance sheet as contra asset accounts

Adjusting entries affect

both income statement and balance sheet accounts.