ACCTI- Obj 4.03

If the beginning Supplies balance is $1,800, and the ending Supplies balance is $300, the correct adjustment on the worksheet is to:

• debit Supplies and credit Supplies Expense, $300.

• debit Supplies Expense and credit Supplies, $1,500.

• debit Supplies Expense and credit Supplies, $300.

• debit Supplies and credit Supplies Expense, $1,500.

The beginning Prepaid Insurance balance is $3,700 and the ending Prepaid Insurance balance is $2,200. The correct adjusting entry is:

• debit Prepaid Insurance and credit Insurance Expense $1,500.

• debit Insurance Expense and credit Prepaid Insurance $1,500.

• debit Prepaid Insurance and credit Insurance Expense $3,700.

• debit Insurance Expense and credit Prepaid Insurance $3,700.

At the end of the accounting period, the Prepaid Insurance account needs to be adjusted by $235 to reflect insurance that has been used during the period. How is the adjustment recorded on the multicolumn trial balance worksheet?

• In the Adjustments columns, debit Insurance Expense, $235; credit Prepaid Insurance, $235.

• In the Adjustments columns, debit Prepaid Insurance, $235; credit Insurance Expense, $235.

• In the Income Statement columns, debit Insurance Expense, $235; credit Prepaid Insurance, $235.

• D. In the Trial Balance columns, debit Prepaid Insurance, $235; credit Insurance Expense, $235.

If the beginning Prepaid Insurance balance is $2,000 and the ending value of the Prepaid Insurance is $800, the correct adjustment on the worksheet is to:

• debit Insurance Expense and credit Prepaid Insurance, $1,200

• debit Prepaid Insurance and credit Insurance Expense, $1,200

• debit Insurance Expense and credit Prepaid Insurance, $800

• debit Prepaid Insurance and credit Insurance Expense, $800

The XYZ Company worksheet shows the Income Statement debit total is $700 and the Income Statement credit total is $950. The company has a:

• net income of $250

• net income of $1,650

• net loss of $250

• net loss of $1,650

The beginning Supplies balance is $2,300 and the ending Supplies balance is $2,200. The correct adjusting entry is:

• debit Supplies and credit Supplies Expense $100

• debit Supplies and credit Supplies Expense $2,300

• debit Supplies Expense and credit Supplies $100

• debit Supplies Expense and credit Supplies $2,300

A General Journal entry is shown below. The correct posting for the entry is:

• debit Supplies-Store, $135; credit Accounts Payable-Control, $135, Accounts Payable/Gourmet Foods, $135

• debit Supplies-Store, $135; credit Accounts Payable/Gourmet Foods, $135

• debit Accounts Payable-Control, $135; credit Accounts Payable/Gourmet Foods, $135

• debit Accounts Payable/Gourmet Foods, $135; credit Supplies-Store, $135

On February 28 of the current year, Yancey Company received a bank statement dated February 27. The following information is obtained from the bank statement and from the records of the business.

Bank statement balance: $3,500.00

Outstanding checks:

No. 234 - $100.00

No. 235 - $90.00

Bank service charge: $3.50

Outstanding deposits:

February 27, $500.00

February 28, $200.00

Checkbook balance on Check Stub No. 237: $3,873.00

Does the bank statement reconcile?

• No, the adjusted checkbook balance is $140.50 too low

• No, the adjusted checkbook balance is $913.50 too high

• Yes, the adjusted checkbook balance and the adjusted bank balance agree

• Yes, the adjusted checkbook balance is more than the adjusted bank balance

On a worksheet, the Income Statement credit total is $2,150 and the Income Statement debit total is $2,400. The company has a:

• net income of $4,550

• net income of $250

• net loss of $4,550

• net loss of $250

Use the year-end worksheet for Cooked Books Accounting in the figure below.

What is the Acc.Depr.-Store Equip balance on the post-closing trial balance?

• The Acc. Depr.-Store Equip balance is $2,000

• The Acc. Depr.-Store Equip balance is $1,500

• The Acc. Depr.-Store Equip balance is $1,000

• The Acc. Depr.-Store Equip balance is $500