exam 2 ch 3

Which of the following pairs of accounts could not appear in the same adjusting entry?

Accumulated Depreciation and Building

Accumulated Depreciation is a liability because it has a credit balance and it is on the balance sheet.

false

Which of the following pairs of accounts could not appear in the same adjusting entry?

fees earned and cash

Adjusting entries affect at least one

income statement account and one balance sheet account

What effect will this adjustment have on the accounting records? Wages Expense 6,375 Wages Payable 6,375

decrease net income

The difference between the balance of a fixed asset account such as equipment and the related accumulated depreciation account is called

net book value

The net book value of a fixed asset is determined by

original cost less accumulated depreciation

All adjusting entries will affect net income.

true

Adjusting entries always include

at least one income statement account and one balance sheet account.

The adjusting entry to record the depreciation of equipment at year end is

debit Depreciation Expense credit Accumulated Depreciation

Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $9,000 and unexpired insurance of $1,500, for the year ending on Dec 31?

debit Insurance Expense, $7,500 credit Prepaid Insurance, $7,500

The balance in the supplies account, before adjustment at the end of the year is $7,000. The proper adjusting entry if the amount of supplies on hand at the end of the year is $4,500 would be

debit Supplies Expense $2,500, credit Supplies $2,500

The current balance in wages expense is $7,500. Which of the following is the proper adjusting entry at year end on Dec. 31, for wages accrued but not paid, $1,500.

debit Wages Expense, $1,500 credit Wages Payable, $1,500