College Acct 1- Chapter 3

Which of the following is NOT a time period commonly used by companies in reporting accounting / financial information?

• Six-month interval

• Three-month interval (quarter)

• 15-month interval

• One Month

• Annual / One Year

Adjusting entries:

• Affect both income statement and balance sheet accounts

• Affect ONLY balance sheet accounts

• Affect ONLY income statement accounts

• Affect cash accounts

• Affect only equity accounts

A company's Office Supplies account shows a beginning balance of $300 and an ending balance of $100. If office supplies expense for the year is $2,200, what amount of office supplies was purchased during the year?

• $2,200

• $3,700

• $3,500

• $2,000

• $3,300

Total revenues for the period are $74,300, total expenses are $39,000 and dividends are $9,000. What is the correct closing entry for the revenue accounts?

• Debit Revenue accounts $74,300; credit Income Summary $74,300

• Debit Revenue accounts $39,000; credit Income Summary $39,000

• Debit Income Summary $74,300; Credit Revenue accounts $74,300

• Debit Revenue accounts $74,300; Credit Retained Earnings $39,000

• Debit Income Summary $39,000; Credit Expenses $39,000

A physical count of supplies on hand at the end of October indicated $250 of supplies on hand. The general ledger balance before any adjustments is $1,150. What adjusting entry is needed?

• Debit Supplies $900; Credit Supplies Expense $900

• Debit Cash $250; Credit Supplies $250

• Debit Supplies Expense $900; Credit Supplies $900

• Debit Prepaid Supplies $900; Credit Supplies Expense $900

• Debit Supplies Expense $250; Credit Supplies $250

If Stuart Tax Services' office supplies on August 1 was $2,100, the company purchased $725 during the month, and a physical count showed $1,325 of supplies at the end of the month, what is the amount of the adjusting entry needed?

• $2,100

• $1,500

• $725

• $1,325

• $1,975

On February 1, a company paid the $1,350 premium on a three-year insurance policy. What amount of the insurance expense will be reported on the income statement for the first year?

• $412.50

• $37.50

• $450

• $1,350

• $1,012.50

The correct adjusting entry for accrued and unpaid employee wages of $5,500 on December 31 is:

• Debit Salary Expense $5,500; Credit Cash $5,500

• Debit Salary Expense $5,500; Credit Fees Earned $5,500

• Debit Salary Expense $5,500; Credit Prepaid Salary $5,500

• Debit Salaries Payable $5,500; Credit Salaries Expense $5,500

• Debit Salaries Expense $5,500; Credit Salaries Payable $5,500

Which of the following assets is NOT depreciated?

• Buildings

• Equipment

• Land

• Store Fixtures

• Computers

Based on the following information from Scranton Company's Balance Sheet, calculate the current ratio:

Current assets $500,000

Investments $25,000

Plant assets $100,000

Current Liabilities $100,000

Long-term Liabilities $75,000

Retained Earnings $228,000

• 3.33

• 3.51

• 0.20

• 5.0