Ch. 15 Adjusting a Trial Balance

The amount in the Supplies—Office account on an unadjusted trial balance represents the value of supplies

• at the beginning of a fiscal period

• used during a fiscal

  period

• at the beginning of a fiscal period plus office supplies bought during the fiscal period

• bought during a fiscal period.

The two accounts used to adjust the Office Supplies account are

• Supplies and Purchases

• Supplies—Office and Income Summary

• Supplies—Office and Supplies Expense—Office

• Supplies Expense—Office and Income Summary

The portion of the insurance premiums that has expired during a fiscal period is classified as

• a liability

• an asset

• an expense

• capital

The two accounts used to adjust the Prepaid Insurance account are

• Insurance Expense and Income Summary

• Prepaid Insurance and Insurance Expense

• Prepaid Insurance and Income Summary

• Prepaid Insurance Expense and Income Summary.

For a business using the periodic inventory method, the Merchandise Inventory amount on the unadjusted trial balance represents the merchandise inventory

• at the end of a fiscal period

• at the beginning of a fiscal period

• purchased during a fiscal period

• available during a fiscal period

The two accounts used to adjust the Merchandise Inventory account are

• Merchandise Inventory and Supplies

• Merchandise Inventory and Purchases

• Merchandise Inventory and Income Summary

• Merchandise Inventory and Sales

A credit to Income Summary in the Merchandise Inventory adjustment represents the

• decrease in Merchandise Inventory

• increase in Merchandise Inventory

• beginning Merchandise Inventory

• ending Merchandise Inventory

Recording revenue in the accounting period in which the revenue is earned is an application of the accounting concept

• Realization of Revenue

• Consistent Reporting

• Historical Cost

• Adequate Disclosure

The two accounts used to adjust for interest income earned on notes receivable are

• Interest Receivable and Interest Income

• Accounts Receivable and Interest Income

• Interest Receivable and Sales

• Accounts Receivable and Sales

After recording the adjustment for accumulated depreciation, the book value of plant assets

• remains unchanged

• increases

• decreases

• cannot be determined