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41 the adjusting entry to record accrued interest on a note payable requires a debit 4301857

 

41. The adjusting entry to record accrued interest on a note payable requires a debit to 
A. Interest Income and a credit to Notes Payable.
B. Interest Payable and a credit to Interest Expense.
C. Interest Expense and a credit to Cash.
D. Interest Expense and a credit to Interest Payable.

42. Allowance for Doubtful Accounts is reported in the 
A. Assets section of the balance sheet.
B. Operating Expenses section of the income statement.
C. Liabilities section of the balance sheet.
D. Cost of Goods Sold section of the income statement.

43. On July 1, 2013, a firm purchased a 1-year insurance policy for $1,800 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2013, is 
A. $600.
B. $1,050.
C. $900.
D. $1,800.

44. On May 1, 2014, a firm purchased a 1-year insurance policy for $3,600 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2014, is 
A. $3,600.
B. $2,400.
C. $2,100.
D. $1,200.

45. On January 2, 2014, a firm purchased equipment for $8,500. Depreciation expense for the year ending December 31, 2014, given the straight-line method, a 5-year useful life, and a salvage value of $1,500, is 
A. $1,500.
B. $1,700.
C. $1,200.
D. $1,400.

46. On January 1, 2014, a firm purchased machinery for $17,000. Depreciation expense for the year ending December 31, 2014, given the straight-line method, a 5-year useful life, and a salvage value of $3,000, is 
A. $3,000.
B. $3,400.
C. $2,800.
D. $2,400.

47. Accrued expenses are 
A. paid for in one period but not fully used until a later period.
B. used in one period but not paid for until a later period.
C. paid for, recorded, and used in one period.
D. budgeted but not paid for or used during the period.

48. An adjusting entry is usually not required for a revenue item when it is 
A. budgeted, paid for, and partially earned in one period but not fully earned until a later period.
B. paid for by the customer, recorded, and earned in one period.
C. paid for by the customer and recorded in one period but not fully earned until a later period.
D. earned in one period but not paid for by the customer or recorded until a later period.

49. On November 1, 2013, Paige Turner Publishing received $50,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2013, is 
A. Debit Subscriptions Income $8,400; credit Unearned Subscriptions $8,400.
B. Debit Unearned Subscriptions $8,400; credit Subscriptions Income $8,400.
C. Debit Unearned Subscriptions $4,200; credit Subscriptions Income $4,200.
D. Debit Unearned Subscriptions $50,400; credit Subscriptions Income $50,400.

50. The Supplies account has a trial balance of $3,136. A year-end inventory shows $1,734 worth of supplies left at the end of the year. The correct adjusting entry is: 
A. debit Supplies Expense $1,734; credit Prepaid Supplies $1,734
B. debit Supplies $1,402; credit Supplies Expense $1,402
C. debit Supplies Expense $3,136; credit Supplies $3,136
D. debit Supplies Expense $1,402; credit Supplies $1,402

 

 

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