Acct. 1 - 4.03 Review

On a worksheet, the Income Statement debit total is $900 and the Income Statement credit total is $1,100. The company has a:

• Net income of $2,000

• Net income of $200

• Net loss of $200

• Net loss of $2,000

If the beginning supplies balance is $1,400, and the ending supplies balance is $900, the correct adjustment on the worksheet is to debit:

• Supplies and credit Supplies Expense $900

• Supplies and credit Supplies Expense $500

• Supplies Expense and credit Supplies $900

• Supplies Expense and credit Supplies $500

If the beginning prepaid insurance balance is $1,800, and the ending value of the insurance is $1,000, the correct adjustment on the worksheet is to debit:

• Insurance Expense and credit Prepaid Insurance $2,800

• Prepaid Insurance and credit Insurance Expense $800

• Insurance Expense and credit Prepaid Insurance $800

• Prepaid Insurance and credit Insurance Expense $2,800

Supplies-Office has a balance of $800. At the end of the month, a physical count of the Supplies-Office items show only $380 on hand. What is the journal entry for recording the adjustment to Supplies-Office?

• Debit Supplies Expense-Office, $420; Credit Supplies-Office, $420

• Debit Supplies Expense-Office, $380; Credit Supplies-Office, $380

• Debit Supplies-Office, $420; Credit Supplies Expense-Office, $420

• Debit Supplies-Office, $380; Credit Supplies Expense-Office, $380

The merchandise inventory account has a balance of $1,000. At the end of the month, a physical count of the inventory items shows only $600 is on hand. What is the journal entry for recording the adjustment to Merchandise Inventory?

• Debit Merchandise Inventory, $600; Credit Income Summary, $600

• Debit Merchandise Inventory, $400; Credit Income Summary, $400

• Debit Income Summary, $600; Credit Merchandise Inventory, $600

• Debit Income Summary, $400; Credit Merchandise Inventory, $400

At the end of the year, Tom's Trucking has calculated its Federal Income Tax amount for the year to be $6,000. Tom's Trucking has already made Federal Income Tax payments in the amount of $4,000. How is the adjusting entry for Federal Income Tax Expense recorded in the adjustments columns?

• Debit Federal Income Tax Expense, $10,000; Credit Federal Income Tax Payable, $10,000

• Debit Federal Income Tax Expense, $2,000; Credit Federal Income Tax Payable, $2,000

• Debit Federal Income Tax Expense, $4,000; Credit Federal Income Tax Payable, $4,000

• Debit Federal Income Tax Expense, $6,000; Credit Federal Income Tax Payable, $6,000

Finding the cost of merchandise sold, given the following information: Purchases, $8,000; Beginning Inventory, $45,000; Ending Inventory, $31,000.

• $6,000

• $22,000

• $68,000

• $84,000