71) On November 1, Phillips Tool and Die Company paid six months' insurance in advance totaling $9,000. An adjusted trial balance prepared on December 31 would include a balance in the Prepaid Insurance account of:

A) $0.

B) $3,000.

C) $6,000.

D) $9,000.

 

72) The balance in the Accumulated Depreciation — Machine account at the end of the year is $10,000. The book value of the machine is $30,000. The cost of the machine was:

A) $10,000.

B) $20,000.

C) $30,000.

D) $40,000.

73) HG Enterprises paid $105,000 for office furniture. The furniture is depreciated using the straight-line method and has an estimated service life of 7 years.  After three years of use, the book value of the furniture will be:

A) $45,000.

B) $60,000.

C) $90,000.

D) $105,000.

 

74) A company has $500 in Supplies before any adjustments. At the end of the year, an adjusting entry is made to debit Supplies Expense for $100. The ending balance in the Supplies account will be:

A) $0.

B) $100.

C) $400.

D) $500

 

75) On December 1, 2012, Mindy's Daycare receives $2,700 in advance for an agreement to care for Susan's children for the months of December, January, and February. Mindy's Daycare will make an adjusting entry on December 31, 2012 to:

A) credit Revenue for .$2,700.

B) debit Unearned Revenue for $900.

C) credit Revenue for $1,800.

D) credit Prepaid Revenue for $1,350.

76) At December 31, the ABC Company owes an employee for four days of work that will not be paid until January 5th. The weekly rate of pay for a five-day workweek is $1,000.The adjusting entry to record the accrued wages will include a:

A) debit to Salaries Payable for $1,000.

B) debit to Salaries Expense for $1,000.

C) debit to Salaries Payable for $800.

D) debit to Salaries Expense for $800.

 

77) Antler Company holds a $10,000 note receivable as an investment. Each month Antler earns $100 of interest revenue on the note. At the end of the accounting period, Antler needs to record the accrued revenue on the note for three months that it will receive next year. The amount of the adjusting journal entry would be:

A) $0.

B) $100.

C) $300.

D) $10,000.

 

78) ABC Company owes the bank $40,000 on their mortgage. The bank charges them $300 a month in interest. At the end of the accounting period, ABC owes the bank three months of interest. The adjusting journal entry made by ABC Company will include:

A) a credit to Interest Revenue for $900.

B) a debit to Interest Payable for $300.

C) a debit to Interest Expense for $900.

D) a credit to Interest Receivable for $600.

79) The Prepaid Rent account has a $20,000 debit balance in the unadjusted trial balance. There is a $1,000 credit adjustment to Prepaid Rent. The adjusted trial balance will show Prepaid Rent as a:

A) $19,000 credit balance.

B) $21,000 credit balance.

C) $19,000 debit balance.

D) $21,000 debit balance.

 

80) The Unearned Rent account has a $6,000 credit balance in the unadjusted trial balance. There is a $1,000 debit adjustment to Unearned Rent. The adjusted trial balance will show Unearned Rent as a:

A) $7,000 debit balance.

B) $7,000 credit balance.

C) $5,000 debit balance.

D) $5,000 credit balance.