31. Which of the following is a possible adjusting journal entry?
32. Adjusting entries are primarily needed for:
34. Making insurance payments in advance is an example of:
35. When a magazine sells subscriptions to customers, it is an example of:
36. When a company makes an end-of-period adjusting entry which includes a credit to
Prepaid Rent, the debit is usually made to:
37. When a company makes an end-of-period adjusting entry which includes a debit to
Supplies Expense, the usual credit entry is made to:
38. Prepayments occur when:
39. An example of an adjusting entry would not include:
40. Which of the following would not typically be used as an adjusting entry?
41. The adjusting entry required when amounts previously recorded as unearned revenues are
earned includes:
42. Adjusting entries:
43. The adjusting entry required to record accrued expenses includes:
44. Yummy Foods purchased a one-year hazard insurance policy on August 1 and recorded
the $4,200 premium to prepaid insurance. At its December 31 year-end, Yummy Foods would
45. The employees of Neat Clothes work Monday through Friday. Every other Friday the
company issues payroll checks totaling $32,000. The current pay period ends on Friday,
January 3. Neat Clothes is now preparing financial statements for the year ended December
31. What is the adjusting entry to record accrued salaries at the end of the year?
46. On April 1, a $4,800 premium on a one-year insurance policy on equipment was paid and
charged to Prepaid Insurance. At the end of the year, the financial statements would report:
47. On September 1, 2012, Gold Magazine sold 400 one-year subscriptions for $90 each. The
total amount received was credited to Unearned Revenue. What would be the required
adjusting entry at December 31, 2012?
48. During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries
has accrued by the end of the year but has not been paid. The year-end adjusting entry would
include which one of the following?
49. At the beginning of December, Global Corporation had $2,000 in supplies on hand.
During the month, supplies purchased amounted to $3,000, but by the end of the month the
supplies balance was only $800. What is the appropriate month-end adjusting entry?
50. Eve’s Apples opened for business on January 1, 2012, and paid for two insurance policies
effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage
policy was $12,000 for a two-year term. What was the balance in Eve’s Prepaid Insurance
account as of December 31, 2012?
51. Which of the following is(are) true regarding the characteristics of adjusting entries?
52. On July 1, 2012, Charlie Co. paid $18,000 to Rent-An-Office for rent covering 18 months
from July 2012 through December 2013. What adjusting entry should Charlie Co. record on
53. Which of the following regarding adjusting entries is correct?
54. A list of all accounts and their balances after updating account balances for adjusting
entries is referred to as:
55. An adjusted trial balance:
56. Resources owned by the company that will provide a benefit for more than one year are
called:
57. The following financial information is from Shovels Construction Company for 2012:
What is the amount of current assets, assuming the accounts above reflect normal activity?
58. Consider the following items:
How many of the items listed above are generally long-term assets?
59. The following financial information is from Bronco Company. All debt is due within one
year unless stated otherwise.
What is the amount of current liabilities?
60. The following table contains financial information for Trumpeter Inc. before closing
entries:
What is Trumpeter’s net income?
61. The following table contains financial information for Trumpeter Inc. before closing
entries:
What is the amount of Trumpeter’s total assets?
62. The following table contains financial information for Trumpter’s Inc. before closing
entries:
What is the amount of Trumpter’s total liabilities?
63. The closing entry for expenses includes:
64. The primary purpose of closing entries is to:
65. The following table contains financial information for Fisher Inc. for 2012 before closing
entries:
How many of the above accounts are permanent?
66. Permanent accounts would not include:
67. The purpose of closing entries is to transfer:
68. Which of the following is a possible closing entry?
69. Permanent accounts would not include:
70. Temporary accounts would not include: