90.
Consider the following events for Betterment Incorporated:
January 1
Betterment purchases gasoline for $200 on account.
January 7
Betterment advertises lawn mowing services for $100 per lawn.
January 9
Betterment signs up 8 customers who pay a total of $800 cash.
January 12
Betterment mows the lawns of the 8 customers and all gasoline
purchased on January 1 is used.
January 13
Betterment pays for the gasoline purchased on January 1.
Under cash-basis accounting, what is the appropriate day to record the expenses related
to the gasoline?
91.
Consider the following events for Sophia Incorporated:
April 5
Sophia purchases volleyballs for $200 on account.
April 6
Sophia advertises a sand volleyball camp for $20 a person.
April 12
Thirty people sign up for the camp paying a total of $600.
April 21
Sophia hosts the sand volleyball camp.
April 23
Sophia pays for the volleyballs purchased on April 5.
Under accrual-basis accounting, what is the appropriate day to record the revenues from
the sand volleyball camp?
92.
Consider the following events for Sophia Incorporated:
April 5
Sophia purchases volleyballs for $200 on account.
April 6
Sophia advertises a sand volleyball camp for $20 a person.
April 12
Thirty people sign up for the camp paying a total of $600.
April 21
Sophia hosts the sand volleyball camp.
April 23
Sophia pays for the volleyballs purchased on April 5.
Under accrual-basis accounting, what is the appropriate day to record the expenses
related to the sand volleyball camp?
93.
Consider the following events for Sophia Incorporated:
April 5
Sophia purchases volleyballs for $200 on account.
April 6
Sophia advertises a sand volleyball camp for $20 a person.
April 12
Thirty people sign up for the camp paying a total of $600.
April 21
Sophia hosts the sand volleyball camp.
April 23
Sophia pays for the volleyballs purchased on April 5.
Under cash-basis accounting, what is the appropriate day to record the expenses related
to the sand volleyball camp?
94.
Consider the following events for Sophia Incorporated:
April 5
Sophia purchases volleyballs for $200 on account.
April 6
Sophia advertises a sand volleyball camp for $20 a person.
April 12
Thirty people sign up for the camp paying a total of $600.
April 21
Sophia hosts the sand volleyball camp.
April 23
Sophia pays for the volleyballs purchased on April 5.
Under cash-basis accounting, what is the appropriate day to record the revenues related
to the sand volleyball camp?
95.
Which one of the following best describes the characteristics of adjusting entries?
3-46
96.
Which of the following regarding adjusting entries is correct?
97.
Adjusting entries are primarily needed for:
98.
Which of the following is true about adjusting entries?
99.
Prepayments occur when:
100.
Deferred revenues refer to:
101.
An accrued expense occurs when:
102.
An accrued revenue represents:
103.
Making insurance payments in advance is an example of a(n):
104.
When a magazine sells one-year subscriptions to customers but receives the full amount
of cash immediately, it is an example of a(n):
105.
Receiving a utility bill for costs in the current period but delaying payment until the
following period is an example of a(n):
106.
Providing goods or services to customers on account is an example of a(n):
107.
An example of an adjusting entry would not include:
108.
The adjusting entry required when amounts previously recorded as deferred revenues are
earned by providing goods or services to customers includes:
109.
The adjusting entry required to record accrued expenses includes:
110.
Adjusting entries:
111.
On July 1, 2018, Charlie Co. paid $18,000 to Rent–An-Office for rent covering 18 months
from July 2018 through December 2019. What adjusting entry should Charlie Co. record on
December 31, 2018?
A.
Rent Expense
18,000
Cash
18,000
B.
Rent Expense
18,000
Prepaid Rent
18,000
C.
Prepaid Rent
6,000
Rent Expense
6,000
D.
Rent Expense
6,000
Prepaid Rent
6,000
112.
Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon
maturity of the loan. The loan and interest must be paid back on March 31, 2019. As of
December 31, 2018, what amount, if any, should Allen Inc. report for interest payable?
113.
Which of the following is a possible adjusting journal entry?
114.
When a company makes an end–of-period adjusting entry that includes a credit to Prepaid
Rent, the debit is usually made to:
115.
When a company makes an end–of-period adjusting entry, which includes a debit to
Supplies Expense, the usual credit entry is made to:
116.
Which of the following would
not
typically be used as an adjusting entry?
A.
Rent Expense
Prepaid Rent
B.
Cash
Deferred Revenue
C.
Interest Expense
Interest Payable
D.
Deferred Revenue
Service Revenue
117.
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 record which of the following adjusting entries?
A.
Insurance Expense
1,750
Prepaid Insurance
1,750
B.
Prepaid Insurance
1,750
Insurance Expense
1,750
C.
Insurance Expense
1,750
Prepaid Insurance
2,450
Accounts Payable
4,200
D.
Insurance Expense
2,450
Prepaid Insurance
2,450
118.
The employees of Neat Clothes work Monday through Friday. Every other Friday the
company issues payroll checks totaling $32,000 (or $3,200 per weekday). 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?
A.
Salaries Payable
22,400
Salaries Expense
22,400
B.
Salaries Expense
6,400
Salaries Payable
6,400
C.
Salaries Expense
9,600
Salaries Payable
9,600
D.
Salaries Expense
22,400
Salaries Payable
22,400
119.
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:
120.
On September 1, 2018, Gold Magazine sold 400 one–year subscriptions for $90 each. The
total amount received was credited to Deferred Revenue. What would be the required
adjusting entry at December 31, 2018?
A.
Deferred Revenue
36,000
Service Revenue
36,000
B.
Service Revenue
24,000
Deferred Revenue
24,000
C.
Deferred Revenue
24,000
Service Revenue
24,000
D.
Deferred Revenue
12,000
Service Revenue
12,000