5.1   Learning Objective 5-1

 

1) Adjusting journal entries:

A) need not be journalized since they appear on the worksheet.

B) need not be posted if the financial statements are prepared from the worksheet.

C) are not needed if closing entries are prepared.

D) must be journalized and posted.

 

2) Journal entries that are needed in order to update account balances for internal business transactions (such as supplies and prepaid rent) at the end of the period are:

A) closing entries.

B) adjusting entries.

C) sales entries.

D) None of the above are correct.

 

3) The adjusting entry to record depreciation for the company automobile would be:

A) debit Accumulated Depreciation, Automobile; credit Depreciation Expense, Automobile.

B) debit Accumulated Depreciation, Automobile; credit Automobile.

C) debit Depreciation Expense, Automobile; credit Accumulated Depreciation, Automobile.

D) debit Depreciation Expense, Automobile; credit Automobile.

 

4) The adjusting entry to record the expired rent would be to:

A) debit Prepaid Rent; credit Rent Expense.

B) debit Cash; credit Prepaid Rent.

C) debit Prepaid Rent; credit Cash.

D) debit Rent Expense; credit Prepaid Rent.

5) The adjusting entry for accrued salaries is to:

A) debit Salaries Expense; credit Salaries Payable.

B) debit Salaries Expense; credit Cash.

C) debit Salaries Payable; credit Salaries Expense.

D) debit Cash; credit Salaries Expense.

 

6) Each adjustment affects:

A) the income statement.

B) the balance sheet.

C) the cash account.

D) Both A and B are correct.

 

7) Mark’s Tree Service depreciation for the month is $600. The adjusting journal entry is:

A)

Equipment

600

Accumulated Depreciation

600

 

B)

Depreciation Expense

600

Accumulated Depreciation

600

 

C)

Depreciation Expense

600

Equipment

600

 

D)

Accumulated Depreciation

600

Depreciation Expense

600

 

8) Tim’s Electrical Service purchased tools for $4,000. They have an expected life of 20 months and no residual value. The adjusting journal entry for the month is:

A)

Depreciation Expense

200

Equipment

200

 

B)

Depreciation Expense

200

Accumulated Depreciation

200

 

C)

Accumulated Depreciation

200

Depreciation Expense

200

 

D)

Accumulated Depreciation

200

Equipment

200

 

 

9) Samantha’s Design Studio showed office supplies available of $800. A count of the supplies left on hand as of June 30 was $500. The adjusting journal entry is:

A)

Office Supplies

300

Office Supplies Expense

300

 

B)

Office Supplies Expense

500

Office Supplies

500

 

C)

Office Supplies

500

Office Supplies Expense

500

 

D)

Office Supplies Expense

300

Office Supplies

300

 

10) Tina’s Event Planning bought a computer worth $3,500 with an expected life of 5 years and a residual value of $750. What is the adjusting journal entry after the first year?

A)

Computer

550

Depreciation Expense

550

 

B)

Computer

550

Accumulated Depreciation, Computer

550

 

C)

Depreciation Expense

550

Accumulated Depreciation, Computer

550

 

D)

Depreciation Expense

550

Computer

550

 

 

 

 



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