quiz chapter 3

a company pays its employees 4000 each Friday, which amounts to 800 per day for the five day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is

3200

if a company records prepayment of expenses in an asset account, the adjusting entry when all or part of the prepaid asset is used or expired would

result in a debit to an expense and a credit to an asset account

adjusting entries

Affect both income statement and balance sheet accounts

the approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is

accrual basis accounting

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:

debate unearned legal fees and credit legal fees earned

Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

debit office supplies expense $254 and credit Office Supplies $254

a physical count of supplies on hand at the end of may for masters inc. indicated 1250 of supplies on hand. the general ledger balance before any adjustment is 21000. what is the adjusting entry for office supplies that should be recorded on may 31

debit supplies expense 850 and credit supplies 850

on December 31, Carmack company received a 215 utility bill on December that it will not pay until jan 15. the adjusting entry needed on December 31 to accrue the expense is

debit utilities expense 215; credit accounts payable 215

the total amount of depreciation recorded against an asset over the entire time the asset has been owned

is referred to as accumulated depreciation

which of the following is classified as a current asset? office equipment, patent, unearned revenue, office supplies, land

office supplies