d) Debit Interest Expense $2,100 and credit Accrued Interest Payable $4,200. Revenues B. Accounts Receivable; Bad Debt Expense. c. debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100 1) Shop supplies are expensed when: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. 1) Depreciation expense is: 1) Unearned revenue appears: What action should the veterinary office assistant take upon aging accounts receivable on March 1 of the same year? Which of the following is most likely not considered an adjusting entry? Which of the following will occur if an adjusting entry to record an unrecorded receivable is NOT made? Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Land a. Listing current liabilities in order of maturity. Inform Mr. Brown that his account will go to a collection agency if it remains unpaid by the 25th. a. depreciation of long-term physical assets. Compute the dealerships sales price variance and sales volume variance for the month and classify each as favorable or unfavorable. d) Net income will be overstated and total assets will be overstated. D. An entry to convert an asset to a liability. b. snow removal services that have been provided but have not been billed or paid b) The entry to pay salaries. increases the balance of an expense account, Prior to the adjusting process, accrued expenses have, been incurred but not paid and not recorded, not yet been recorded as expenses but have been paid, not earned but the cash has been received, income statement account and one balance sheet account, The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is. a) Transactions involving small dollar amounts are not recorded in Millridge's accounting records. d) $34,240. a. theater tickets sold last month for yesterday's performance a. On January 25, Ramona's Nursery hired a college student to drive the minibus; the new employee is to begin work in February. 33. D. Adjusting entries are recorded to make adjustments to all general ledger and subsidiary-ledger accounts to reflect the true & correct value at the end of the fiscal reporting period. b) Realization principle These items are not included as Itemized Deductions and can be entered independently. B. Which of the following is not considered a basic type of adjusting entry? 59) Which of the following is not a characteristic of trend projections? Wages Expense 3. 1) Which of the following would not be a proper application of the concept of materiality by Millridge Corporation? b. Test Prep. c) As an asset on the balance sheet. Revenues and expenses B. Which of the following expresses the key elements of the statement of owners' equity? Borders and boundaries The boundaries of adjustment disorder are not well defined in the current classifications. a. net income or loss will always be underestimated Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. It was most recently raised . Asset b. a. Vacancy code VA/2023/B5303/25590. d) As a part of the retained earnings. copyright 2003-2023 Homework.Study.com. a) It is prepared before adjusting entries. Indicate also the type of financial statement. a. stockholders' equity Change in accounts payable. a) On January 1, Empire Company paid rent for six months on its office building. a) Expenses increase stockholders' equity. The accrual of an electricity bill for electricity used but not yet paid The recognition of depreciation expense for the period The recognition of the used and unused portions of a prepaid rent The entry to record the collection of interest receivable Expert Solution An entry to convert an asset to a liability. All other trademarks and copyrights are the property of their respective owners. Purchased land for cash. Employees earn a total of $12,800 per week. Which one of the following is not considered a basic type of adjusting entry? snow removal services that have been provided but have not been billed or paid. A. asset B. contra asset C. liability D. stockholder's equity E. contra stockholder's equity F. revenue, or expense, Which of the following is also referred to as debt? a) $24,000. d) The entry to pay outstanding bills. Define debit and credit and explain how assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends are affected (increased or decreased) by debits and credits. Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? She has also heard that certain terms have special meanings in accounting relative to everyday use. c) Daystar Company is paid on May 25 for work done in the first two weeks of May. Identify where the following item would be reported in the financial statements. c. common stock Which of the following is not an adjusting entry? c) $112,400. ($60,000 / 10 = $6,000 * 4 = $24,000; $60,000 - $24,000 = $36,000). c. Intangibles; Accumulated Amortization. A. Use the following excerpts from Algona Companys financial statements to determine cash received from customers in 2018. Asset b. Accumulated Depreciation. Current assets b. a. d. debit Prepaid Insurance, $1,800; credit Cash, $1,800, Gracie, Inc. made a prepaid rent payment of $2,800 on January 1. A) An entry to convert a liability to a revenue. Current assets b. a. revenues and expenses are reported in the period in which cash is received or paid or in longer cases. c) To accrue an uncollected revenue. A) Revenues and Liabilities B) Owners' Equity and Assets C) Liabilities and Expenses D) Assets and Expenses, Which of the following is not a correct expression of the accounting equation? Which of the following statements is not true? Collection. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is Basic type of adjusting entry includes recording entry to convert a liability to a revenue, to convert an asset to an expense, and in order to record accrued unpaid expenses. 28. B) c) An entry to convert an asset to an expense. c) Debiting Wage Expense for $4,480 and crediting Wages Payable for $4,480. If an adjustment for salaries earned but not recorded or paid in the amount of $85,000 were to be omitted, how would this affect the financial statements? 1) Before any month-end adjustments are made, the net income of Russell Company is $38,000. a. an increase in liabilities b. decrease in liabilities c. decrease in revenue d. increase in assets, Inventory held by a business is a(an) __________ and when sold becomes a(an) __________. d. prepaid expenses, The adjusting entry for gym memberships earned that were previously recorded in the unearned gym memberships account is The prepaid insurance account had a balance of $3,000 at the beginning of the year. When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were omitted. This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. The appropriate adjusting entry at the end of the period would be: answer choices Debit unearned revenue; credit revenue Debit insurance expense; credit pre-paid insurance Debit cash; credit unearned revenue Debit wages expense; credit wages payable Question 6 120 seconds Q. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. Our LIMITER plug-in takes all the uncertainty out of limiting by analyzing your audio and making intelligent suggestions as to the best settings for your master. b. Definition of Accrual Adjusting Entries Accrual adjusting entries or simply accruals are one of three types of adjusting entries which are prepared at the end of an accounting period so that a company's financial statements will comply with the accrual method of accounting. Because collecting the adjustment data requires time, the adjusting entries are often. Psychosocial adjustment in siblings of children with autism whose families were using a home-based, applied behavior analysis (ABA) program was compared to that of siblings in families who were not using any intensive autism intervention. If the beginning balance of the Accumulated DepreciationEquipment account is $10,000 and an adjusting journal entry is recorded for depreciation on the equipment for $2,500, the balance of the accumulated depreciation account after the entry is recorded will be, If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be, If the following adjusting entry is omitted, what effect will it have on the financial statements? a. a. a computer technician has installed the latest software updates and was paid on the same day WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. When recording an adjusting entry for a prepaid expense. \text{Accounts Receivable}&\text{\$\hspace{5pt}85,000}&\text{\$\hspace{5pt}105,000}\\[20pt] A) exponential smoothing. Gamma Company adjusts its accounts at the end of each month. a. Assets c. Stockholders' equity d. Expenses e. Liabilities, Which of the following current asset or current liability accounts is not included in the computation of cash flows from operating activities? If the balance of supplies at the start of the month was $900 and at the end of the month you had $350 on hand, the adjustment for Supplies would be: $450. c. revenue At the end of June, what should be the balance of Norma's Prepaid Rent account? d) Materiality. (b) Contracts negotiated under part 15 may be of any type or combination of types that will promote the Government's interest, except as restricted in this part (see 10 U.S.C. b) Crediting Wage Expense for $640 and debiting Wages Payable for $640. $3,900 c. Decrease a liability; increase revenue. ($4,800 / 12 = $400 * 1 / 2 = $200). Is the gift you purchased for that special someone really appreciated? Change in accounts receivable. Change from straight-line to sum-of-the-years'-digits method of depreciation. The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year. a) Assets = Liabilities + Owner's Capital + Owner's Drawings - Revenue - Expenses b) Assets + Owner's Drawings + Expenses = Liabilities + Owner's Capital + Revenues c) Assets -, Which account types have a normal debit balance? Adjusting entries, also known as adjusting journal entries (AJE), are the entries made in a business firm's accounting journals to adapt or update the revenues and expenses accounts according to the accrual principle and the matching concept of accounting. Acute myocardial infarction, diabetes, cerebral atrophy, chronic obstructive pulmonary disease, end-stage renal disease, homocysteinemia, rheumatoid arthritis, stroke B. Diabetes . a. depreciation expense for each major class of asset b. balances of major classes of depreciable assets, by nature or function c. accumulated depreciation on, Which of the following is not acceptable treatment for the presentation of current liabilities? a. deferral The correct term for the process of transferring amounts from a book of original entry to specific assets, liabilities, revenues, expenses, and stockholders' equity items is (select, Which of the following have debit balances? d. Building, equipmen, Which of the following is an appropriate representation of the accounting equation? Assets, capital, and withdrawals. 1) Gordy's Corp. has seven employees. 1. The United Shipping Co. borrowed $25,000 at 12% interest on March 1, 2018. d) Update the owners' equity account for the changes in owners' equity that had been recorded in revenue and expense accounts throughout the period. d. rarely needed in large companies, Adjusting entries affect at least one b. allocation of unearned revenue. d. Accounts Receivable, If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n) The fee for delivery is $500. = 15 * 3/20 Expenses have normal debit balances. Depreciation on eligible infrastructure assets need not be recorded if the assets are being maintained at or abo, According to SFAC No. $3,600 a) As income on the income statement. Suppose Dr. Milton's checking account has a balance of $3,458.92. a. b. depreciation c) $38,000. D) trend smoothing. 1) Videobusters, Inc. offered books of video rental coupons to its patrons at $40 per book.