The entry to record revenue earned but not yet received c. The entry to record the earned portion of rent recei. No support bed leveling aid. c) A credit to Child Care Fees Earned of $4,500. d. debit Supplies; credit Stockholders' Equity, Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. b. accounting income. b. 1) Which of the following is considered an adjusting entry? c. contra asset a) $227,700. (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1. A computer technician has installed the latest software updates, but you have not received an invoice or made payment. Which of the assets does not match with the correct contra account? 1) Which of the following statements is not true regarding prepaid expenses? a. Then, identify whether the item increases, '+', or decr, An unearned revenue account is usually considered to be a(n) A) Liability B) Asset C) Revenue D) Expense. b) Only an estimate. Become a Study.com member to unlock this answer! D) An entry to convert an asset to a liability. c. net income or loss will be properly reported on the income statement c) Debit Accrued Interest Payable $6,300. 1) Shop supplies are expensed when: -Depreciation for the month of March: $4,300. The financial statements will be accurate since the $500 does not have to be paid yet. c. The adjustment for prepaid insurance was omitted. When recording an adjusting entry for a prepaid expense. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2018 and 2019 . Send Mr. Brown a friendly written reminder. 4. a) Are needed whenever revenue transactions affect more than one period. Increase in assets and increase in net income. c. $5,000 c) Daystar Company is paid on May 25 for work done in the first two weeks of May. d) $42,000. b) Expenses have normal debit balances. a. debit Supplies Expense; credit Supplies Increase in liabilities c. Decrease in assets d. Decrease in liabilities, An income statement does which of the following? The entry to record bad debts expense for the period. Beginning capital, capital contribution and withdrawals, and net income. a) An overstatement of assets and of net income offset by an understatement of owners' equity. a. Adjusting entries are necessary for the following items: Which of the following is an example of accrued revenue? b) To apportion unearned revenue. On a given Friday, the probability that Flight 277 to Chicago is on time is 23.7%. c. Underrecording depreciation expense. (a) Asset impairment charges can be used to raise future reported income. On February 3, Ron Brown was billed for an office visit. Liability c. Equity d. Revenue e. Expense, Which one of the following represents the expanded basic accounting equation? Change from straight-line to sum-of-the-years'-digits method of depreciation. $12,000 b) Net income will be understated and total assets will be understated. An adjusted trial balance is prepared based on the adjusting entries. Which of the following is most likely not considered an adjusting entry? d. $6,400, Smokey Company purchases a one-year insurance policy on July 1 for $3,600. a. earned and the cash has been received Explore the various types of adjusting journal entries, and examine how to do them. a. failure to adjust Unearned Revenue to recognize revenue earned b. failure to record depreciation for the year c. failure to accrue interest payable d, Which of the following statements best describes tax results to a shareholder in a section 351 transaction when liabilities on property transferred to the corporation are assumed by the corporation? Prepaid expenses. Which of the following is not considered a basic type of adjusting entry a An. c) As an asset on the balance sheet. "The first examination will be $40 or $50, depending on how long the visit is. Adjusting entries can be divided into the following four types. Use the following account types to form the expanded accounting equation. d. expenses are reported in the same period as the revenues to which they relate, Generally accepted accounting principles require that companies use the ____ of accounting. commonly used. 400 A) Supplies expense 400 Supplies 400 B) Depreciation expense 400 Accumulated depreciation 400 C) Wage expense 400 Cash 400 D) Insurance expense 400 Prepaid insurance. 58) The computer monitoring of tracking signals and self-adjustment is referred to as. Adjustments include: Medical Savings Account, Form 8853 Educator Expenses a) Are needed whenever revenue transactions affect more than one period. The note is to be repaid, with interest, in six months. a) Increase by $9,800. 31,2018Dec. An entry to accrue uncollected revenueC. (2) The company's pays all employees up to date each Friday. c) Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15. Stock is exchanged with shareholders. c) Not to be calculated unless the exact life of an asset can be determined. c. revenue, asset Vacancy code VA/2023/B5303/25590. 3321 (a) and 41 U.S.C.3901 ). B) Revenue. (3) On December 1, rent on the office building had been paid for three months. A) Equity. Asset, Liability c. Liability, Liability d. Asset, Asset, Which of the following statements is true concerning all types of tax-free corporate reorganizations? 1) Which of the following would not be a proper application of the concept of materiality by Millridge Corporation? If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? b) Treats as material only those items that are greater than 2% or 3% of net income. a. Debit Depreciation Expense $578 and credit Automobile $578. -Rental income accrued during March, tenant to pay in April: $900. The cash basis of accounting records revenues and expenses when the cash is exchanged, while the accrual basis of accounting, records revenues and expenses when they are incurred, at least one income statement account and one balance sheet account, Prepaid expenses are eventually expected to become, expenses when their future economic value expires or is used up. The above entry is not a basic type of adjusting entry. 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? a) The entry to record unpaid expenses. a. d) Update the owners' equity account for the changes in owners' equity that had been recorded in revenue and expense accounts throughout the period. The adjusting entry on December 31 is Suppose Dr. Milton's checking account has a balance of $3,458.92. 1) Adjusting entries help achieve the goals of accrual accounting by applying which two accounting principles? The Americans with Disabilities Act of 1990, a civil rights law, prohibits employers from discriminating against employees with disabilities. a) The entry to record the earned portion of rent received in advance. 1. c. debit Salaries Payable; credit Salaries Expense b. revenue and the dividends account Which one of the following is not considered a basic type of adjusting entry? In which of the following situations would an adjusting entry be made at the end of January to record an accrued expense? Which of the following accounts normally has a debit balance? Depreciation on eligible infrastructure assets need not be recorded if the assets are being maintained at or abo, According to SFAC No. Change in inventory. The lease requires monthly rent of $550, with 4 months paid in advance. Statement of changes in owner equity C. Balance sheet 2. 24 Questions Show answers. d) Midwood Consultants received payment in February for consulting services rendered in March. a. stockholders' equity d. at least one income statement account and one balance sheet account, Prepaid expenses are eventually expected to become 1) Prepaid expenses appear: b. $550. A debit to an asset account and a credit to an expense account. 1) Which of the following is not a purpose of adjusting entries? a) Liabilities b) Assets c) Revenues d) Owner Equity. Gamma Company adjusts its accounts at the end of each month. 1.1 Background of the Study. 1. d) Net income for Perfect Painting for 2018 is overstated. (a) A power. d) An overstatement of net income and an understatement of assets. A: Accrued revenues are those which have been accrued but not yet paid. -is what's meant by the phrase "The domesticated generations fell Weegy: A suffix is added to the end of a word to alter its meaning. c. records revenues when cash is received and expenses when they are incurred Valid Pupil Personnel Services Credential with academic school counseling emphasis is preferred. What is considered an adjustment to income? Adjusting entries are needed: A. -Rental income accrued during March, tenant to pay in April: $800. (4) Depreciation of office equipment is based on an estimated useful life of five years. User: 3/4 16/9 Weegy: 3/4 ? b) $113,620. A debit to a liability and a credit to cash. c. Revenue minus expenses. b) The entry to pay salaries. 1) Unearned revenue appears: b) The entry to pay salaries. 1) On December 31, Louis Jeweler's made an adjusting entry to record $4,200 accrued interest payable on its mortgage. checks that have a "stop payment" order. Question 1 Which of the following are considered the original "chronic eight" conditions from the 2008 Risk Adjustment Data Technical Assistance for Medicare Advantage Organizations Participation Guide? d. Improperly expensing costs that should be capitalized. C. Assigning expenses to the periods in which they are incurred. a. income statement b. statement of changes in owner equity c. balance sheet, Which of the following groups of accounts have a normal debit balance? Increase in an asset and increase in a liability. = 2 1/4. b. Prepaid Rent 1) In which of the following situations would the largest amount be recorded as an expense of the current year? c. Unearned Subscriptions Which of the following is considered to be unearned revenue? -Supplies used in March: $300. a. net income or loss will always be underestimated a) Assets of Perfect Painting are overstated at December 31, 2018. Asset b. 1) Which of the following is the accounting principle that governs the timing of revenue recognition? 1) Videobusters, Inc. offered books of video rental coupons to its patrons at $40 per book. In order to be considered for the position, please attach the following: 1. 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. depreciation of long-term physical assets. c. Prepaid expenses, land, and accounts receivable. d) Matching. Identify where the following item would be reported in the financial statements. Your brickwall limiter settings will make or break your master. Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry: At the end of the current year, $23,570 of fees have been earned but have not been billed to clients. b) Liabilities of Perfect Painting are understated at December 31, 2018. Pages 3 Ratings 100% (13) 13 out of 13 people found this document helpful; 6 2/3 b) The entry to record depreciation expense. b) An entry to convert an asset to a liability. Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Go to the FASB website and access the FASB Concepts Statements and respond to the following items. a. debit Insurance Expense, $3,000; credit Prepaid Insurance, $3,000 The adjusting entry does not record entry for converting an asset to a liability. 1) Unearned revenue may also be called: a) The entry to record depreciation. Assets, liabilities, and owner's equity. The company's monthly rent is $700. c. contra asset, credit 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. 83) Which of the following isnotconsidered an end-of-period adjusting entry?A) The entry to record the portion of unexpired insurance which has become expense during the period. or in longer cases. 20/3 d. market value. b. An entry to convert an asset to an expense. c) Net income for Perfect Painting for 2018 is understated. a) Net income will be overstated and total assets will be understated. Which of the following basic elements of financial statements is more associated with the balance sheet than the income statement? Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Legal Expense a. b. 1) An adjusting entry involving recognition of accrued revenue is necessary at the end of March in which of the following situations? c) $235,600. c) $112,400. What categories capital falls in: A. Rent expense amount b. d) $900 is paid to an attorney for legal services rendered during the current year. b. a. equipment allocation Asset b. A. The 6% rate is appropriate in this situation. Liability c. Equity d. Revenue e. Expense, Which of the following entries causes an immediate decrease in assets and stockholders' equity? A) d) Prepaid expenses are shown in a special section of the income statement. Revenues, Liabilities, Owners' Equity b. c) $0 Asset b. The cash account will always be affected by adjusting journal entries. Therefore, if an external force is applied, the static friction force will equal the magnitude of the external force, until it surpasses the threshold of motion. a. debit Salaries Payable; credit Cash Considered in the past as being solely a rational being, nowadays, following specialist researches, man is also perceived as an emotional being, triggering emotions which, if appropriately . 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. a. Borrowed $40,000 from First National Bank. d) To record unearned revenue.