31) Samantha purchased a two-year insurance policy for $7,200. The adjusting entry for one month would include a:

A) debit to Insurance Expense, $300.

B) credit to Cash, $300.

C) debit to Prepaid Insurance, $300.

D) credit to Insurance expense, $300.

 

32) Sarah’s Spices’ accrued wages are $1,800. Which of the following is the required adjusting entry?

A) Debit Salaries Expense, $1,800; credit Salaries Payable, $1,800

B) Credit Salaries Expense, $1,800; debit Salaries Payable, $1,800

C) Debit Cash, $1,800; credit Salaries Expense, $1,800

D) Debit Salaries Payable, $1,800; credit Cash, $1,800

33) Total wages per week are $4,800. You need to accrue $4,000 of wages. The adjusting entry would include which of the following?

A) Credit Wages Expense, $4,000; debit Wages Payable, $4,000

B) Debit Wages Expense, $4,000; credit Wages Payable, $4,000

C) Debit Wages Expense, $4,800; credit Wages Payable, $4,800

D) Debit Wages Expense, $4,800; credit Cash, $4,800

 

34) On November 1, Duane paid $24,000 in advance for a year’s rent. The November 30 adjusting entry for rent expense should include a:

A) debit Rent Expense, $24,000.

B) credit Prepaid Rent, $24,000

C) debit Rent Expense, $2,000.

D) credit Cash, $2,000.

 

35) The adjusted trial balance on the worksheet shows Accumulated Depreciation, $1,200, and Depreciation Expense, $900. What was the balance in the Accumulated Depreciation account before the adjustment?

A) $2,100

B) $300

C) $900

D) $1,200

 

36) Great Lakes Modeling Agency purchased $900 of office furniture at the beginning of the month. Depreciation Expense at the end of the month is $200. What is the balance of the Office Furniture account at the end of the month?

A) $700

B) $1,000

C) $200

D) $900

37) The adjustment for wages earned, but not yet paid is:

A) Debit Wages Expense, credit Cash.

B) Debit Wages Payable, credit Wages Expense.

C) Debit Wages Payable, credit Cash.

D) Debit Wages Expense, credit Wages Payable.

 

38) Which of the following accounts would most likely not need to be adjusted at the end of the year?

A) Office Supplies

B) Prepaid Rent

C) Accumulated Depreciation

D) Cash

 

39) Equipment with a cost of $200,000 has an accumulated depreciation of $100,000. What is the book value of the equipment?

A) $150,000

B) $50,000

C) $200,000

D) $100,000

 

40) Equipment with a cost of $150,000 has an accumulated depreciation of $100,000. What is the historical cost of the equipment?

A) $150,000

B) $50,000

C) $200,000

D) $100,000

 

 



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