ACCT II Adjusting Entries

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 multi-column 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.

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

If the beginning Supplies balance is $2,200, and the ending Supplies balance is $700, the correct adjustment on the worksheet is to:

• debit Supplies and credit Supplies Expense, $700.
• debit Supplies Expense and credit Supplies, $700.
• debit Supplies and credit Supplies Expense, $1,500.
• debit Supplies Expense and credit Supplies, $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.

If the beginning Prepaid Insurance balance is $3,400 and the ending value of the Prepaid Insurance is $1,200, the correct adjustment on the worksheet is to:

• debit Insurance Expense and credit Prepaid Insurance, $1,200.
• debit Insurance Expense and credit Prepaid Insurance, $2,200.
• debit Prepaid Insurance and credit Insurance Expense, $1,200.
• debit Prepaid Insurance and credit Insurance Expense, $2,200.

On a worksheet, the Income Statement credit total is $1,200 and the Income Statement debit total is $800. The company has a:

• net loss of $400.
• net loss of $2,000.
• net income of $400.
• net income of $2,000.

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, $300.
• debit Supplies and credit Supplies Expense, $1,500.
• debit Supplies Expense and credit Supplies, $1,500.

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.

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 ABC Manufacturing Company's Income Statement worksheet shows total debits of $600 and total credits of $750. ABC Manufacturing Company has a:

• net loss of $150.
• net loss of $1,350.
• net income of $150.
• net income of $1,350.

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.