Busa 202 Test 3

Record the adjusting entry on December 31 for wages owed to employees that will be paid in January, the next accounting period. (Select all that apply.) credit Cash debit Wages Payable credit Deferred Revenue credit Wages Payable debit Prepaid Wages Expense debit Wages Expense credit Wages Expense

- credit wages payable - debit wages expense

Record the entry to close revenues for the period by selecting the correct accounts from below. (Select all that apply.) debit Revenues credit Retained earnings debit Retained Earnings debit Deferred Revenue credit Revenues debit Accounts Receivable

- debit revenues - credit retained earnings

At the end of the accounting period, the adjusting entry to record the amount earned for services provided that was originally recorded as Deferred Revenue includes a ______. (Select all that apply.) credit to Service Revenue credit to Deferred Revenue credit to Cash debit to Deferred Revenue debit to Cash credit to Accounts Receivable

- debit to deferred revenue - credit to service revenue

An unadjusted trial balance is prepared ______. so that a balance sheet is unnecessary to show that assets are greater than liabilities to send to the company's shareholders to check that debits equal credits

- to check that debits equal credits

After posting all entries to the ledger, the Accounts payable T-account will show

1) Beginning balance on the top of the credit side 2) Ending balance on the bottom of the credit side 3) Payments made on the debit side 4) Purchases on account on the credit side

Nim Com Soup, Inc., issued $20,000 of stock in exchange for cash. The journal entry to record this transaction will include a ______ of $20,000.

1) Debit to Cash 2) Credit to Common Stock

On May 1, its first month of business, Squid Roe, Inc., recorded the receipt of $900 in advance for services to be performed over the three months as Deferred Revenue. Record the May 31 adjusting entry to recognize the first month of revenue earned. (Select all that apply.)

1) Debit to Deferred Revenue 2) Credit Revenue

The debit side of the Retained Earnings T-Account will include which of the following after recording the closing entries? (Select all that apply.)

1) Dividends for the month 2) Expenses for the month

Which of the following accounts found on an unadjusted trial balance typically require adjusting entries

1) Interest Payable 2) Supplies 3) Prepaid Rent

The credit side of the Retained Earnings T-Account will include which of the following after recording the closing entries? (Select all that apply.)

1) Revenues for the month 2) Retained Earnings balance at the end of the month

Adjusting entries

1) Update the accounts to their proper balances 2) Are needed in order to measure the periods net income or loss

The adjusting entry to record revenue earned but not yet billed to customers includes a debit to ______.

Accounts Receivable

Which report is constructed immediately prior to preparing the financial statements with the purpose of demonstrating that the accounts balance?

Adjusting trial balance

Which of the following accounts are closed at the end of the accounting period? Wages Payable Accumulated Depreciation Depreciation Expense Dividends Wages Expense Cost of Goods Sold Revenues

All except Wages Payable and Accumulated Depreciation

The adjusted trial balance should be prepared ______ the financial statements are prepared in order to prove the ______ of the debits and credits.

Before; equality

The entry to close expenses requires the expense accounts to be

Credited

A pizza company receives a check from a customer as partial payment of his account balance. This transaction does not involve the sale of new pizzas. How should the entry be recorded by the pizza company?

Debit Cash and credit Accounts Receivable.

Which of the following statements is true?

Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts.

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

On January 1, Sew What, Inc., purchased $2,000 of supplies on account. The entry includes a debit to _______.

Supplies and credit to supplies payable

Which statement about a journal entry is NOT true?

The journal entry shows the balance in each account.

A company pays $100,000 per week payroll for a 40-hour, five-day work week ending on Fridays. The adjusting entry on December 31, which is a Tuesday, is a ______. debit to Wages Expense for $40,000 and a credit to Wages Payable for $40,000 debit to Wages Expense for $100,000 and a credit to Wages Payable for $100,000 debit to Wages Payable for $40,000 and a credit to Wages Expense for $40,000 debit to Wages Payable for $40,000 and a credit to Wages Expense for $60,000 debit to Wages Expense for $50,000 and a credit to Wages Payable for $50,000 debit to Wages Payable for $100,000 and a credit to Wages Expense for $100,000

a. debit to Wages expense for 40,000 and a credit to Wages payable for 40,000

The adjusting entry to record revenue earned but not yet billed to customers includes a credit to ______. Revenue Accounts Payable Accounts Receivable Cash

a. revenue

When a company pays cash in advance for rent that is to be used over the next two years, the company records a debit to ______ and a credit to ______. Cash; Prepaid Rent Prepaid Rent; Cash Rent Expense; Cash Prepaid Rent; Accounts Receivable

b. Prepaid Rent; Cash

Which of the following is the proper chronological order of the steps in the accounting cycle? Record adjusting entries in the ledger and post them to the journal, record and post entries in the journal, prepare the unadjusted trial balance, prepare the adjusted trial balance, close the temporary accounts into Retained Earnings, prepare a post-closing trial balance and prepare the financial statements. Record entries in the journal and post them to the ledger, prepare the unadjusted trial balance, record and post adjusting entries, prepare the adjusted trial balance, prepare the financial statements, close the temporary accounts into Retained Earnings and prepare a post-closing trial balance. Record adjusting entries in the journal and post to the ledger, record and post-closing entries, prepare the financial statements, and prepare the post-closing trial balance. Close the temporary accounts into Retained Earnings and prepare a post-closing trial balance, record entries in the journal and post them to the ledger, prepare the unadjusted trial balance, record and post adjusting entries, prepare the financial statements, and prepare the adjusted trial balance. Record entries in the ledger and post them to the journal, record and post adjusting entries, prepare the unadjusted trial balance, prepare the financial statements, prepare the adjusted trial balance, prepare a post-closing trial balance and close the temporary accounts into Retained Earnings.

b. Record entries in the journal and post them to the ledger, prepare the unadjusted trial balance, record and post adjusting entries, prepare the adjusted trial balance, prepare the financial statements, close the temporary accounts into Retained Earnings and prepare a post-closing trial balance.

Which of the following adjusting entries represent deferral adjustments that adjust for amounts expired or used during the period? (Select all that apply.) Answers: debit Cash and credit Deferred Revenue debit Wages Expense and credit Wages payable debit Insurance Expense and credit Prepaid Insurance debit Supplies Expense and credit Supplies

b. debit insurance expense and credit prepaid insurance d. debit supplies expense and credit supplies

Which of the following adjusting entries represent deferral adjustments that adjust for amounts expired or used during the period? (Select all that apply.) debit Wages Expense and credit Wages Payable debit Cash and credit Deferred Revenue debit Insurance Expense and credit Prepaid Insurance debit Supplies Expense and credit Supplies

c- debit insurance Expense and credit prepaid insurance d- debit supplies expense and credit supplies

An attorney performs services of $900 for a client and receives $100 cash with the remainder on account. The journal entry for this transaction would ______. a. debit Cash; credit Accounts Receivable and Service Revenue b. debit Cash; credit Service Revenue c. debit Cash and Accounts Receivable; credit Service Revenue d. debit Cash and Service Revenue; credit Accounts Receivable

c. debit Cash and Accounts Receivable; credit service revenue

The normal balance of Inventory is a ______ because it is a(n) ______. debit, shareholders' equity credit, liability debit, asset credit, expense

c. debit, asset

The normal balance of Notes Payable is a ______ because it is a(n) ______. credit, liability debit, asset credit, expense debit, shareholders' equity

credit, liability

Revenue is increased with ______.

credits because it increases shareholders' equity

Which accounts are increased by debits? Assets and owners' equity Expenses and owners' equity Assets, expenses and owners' equity Assets, expenses and dividends

d. assets, expenses and dividends

Pizza Company sold $800 of pizzas on account. The journal entry to record the sale will include a ______. (Select all that apply.) debit to Accounts Receivable credit to Sales Revenue debit to Accounts Payable credit to Deferred Revenue debit to Sales Revenue

debit to Accounts Receivable credit to Sales Revenue

The normal balance of Prepaid Insurance is a ______ because it is a(n) ______.

debit, asset

Expenses are increased with ______.

debits because they decrease shareholders' equity