PENG KT 2020 CH 3 10 SOAL

Orwell Company Ltd, utility expense of $300 are unpaid. The status of account before  adjusment.

• a. Expense overstated 

  Liabilities overtstated 

• b. Expense overstated 

  Liabilities understated 

• c. Expense understated 

  Liabilities overstated

• d. Expense understated 

  Liabilities understated

A review of the ledger of Jhon Company at December 31, 2019. Prepaid insurance  ₺11,300. The company has separate insurance policies on its buildings and its motor  vehicles. Policy B4564 on the building was purchased on April 1, 2018, for ₺9,000. The  policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1,  2019, for ₺ 6,800. This policy has a term of 2 years. Prepare the adjusting entries at  December 31, 2019.

• a. Insurance Expense ₺4,900 

  Prepaid Insurance ₺4,900

  
  

• b. Prepaid Insurance ₺6,400 

  Insurance Prepaid ₺6,400 

  
  

• c. Insurance Expense ₺6,400 

  Prepaid Insurance ₺6,400

  
  

• d. Prepaid Insurance ₺4,900 

  Insurance Prepaid ₺4,900

  
  

Accrued Revenues are...

• a. Always recorded in cash-basis accounting 

• b. Another name of accounts receivable

• c. Unnecessary to record the financial statements will be correct whether they are recorded or  not 

• d. Earned in this period but not yet received

The Haris Company purchased equipment for $15,000 on December 1. It is estimated that annual  depreciation on the equipment will be $3,000. If financial statements are to be prepared on  December 31, the company should make the following adjusting entries.. 

• Debit Depreciation Expense, $3,000 ; Credit Accumulated Depreciation, $3,000

• b. Debit Accumulated Depreciation , $12,000, ; Credit Debit Depreciation Expense, $12.000

• c. Debit Depreciation Expense, $12,000, ; Credit Accumulated Depreciation, $12,000

•  d. Debit Depreciation Expense, $15,000 ; Credit Accumulated Depreciation, $15,000

Cash-Basis Accounting is… 

• a. Companies record revenue when they receive cash.

• b. Companies record transactions that change a company’s statements

• c. Provides a more accurate

• d. To measure assets and equity

At Juny 2019, Mitsuha Company owed employees ¥ 1.450 in salaries that the company  will pay in July. The correct adjusting entries for the transaction above is…

• a. Wages and Salaries Expense ¥ 1.450 

  Wages and Salaries Payable ¥ 1.450 

  
  

• b. Wages and Salaries Payable ¥ 1.450 

  Wages and Salaries Expense ¥ 1.450

  
  

• c. Wages and Salaries Expense ¥ 1.450 

  Account Receivable ¥ 1.450 

  
  

• d. Account Receivable ¥ 1.450 

  Wages and Salaries Expense ¥ 1.450

  
  

There is a salary payable at the end of the period, adjustments can be made as follows:

• A. Salary expense (Dr) and salary payable (Cr) 

  
  

• B. Salary payable (Dr) and salary expense (Cr)

• C. Cash (Dr) and salary payable (Cr)

• D. All wrong

Which of the following will be included in the adjusting entry to prepaid expense?

• A. A credit to an expense account.

• B. A debit to a liability account.

• C. A debit to an expense account.

• D. A debit to a cash account.

Expenses incurred but not yet paid in cash or recorded is…. 

• a. Prepaid Expense 

• b. Unearned Revenue 

• c. Accrued Revenue

• d. Accrued Expense 

Yatoiba Company Ltd. received £ 2,400 on August 6 from Wahidin for services expected  to be completed by November 30. Prepare the adjusting entries on August 31!

• a. Aug. 31 Unearned Service Revenue £ 2,400 

   Service Revenue £ 2,400 

• b. Aug. 31 Unearned Service Revenue £ 600 

   Service Revenue £ 600

• c. Aug. 31 Service Revenue £ 600 

   Unearned Service Revenue £ 600

• d. Aug. 31 Service Revenue £ 2,400 

   Unearned Service Revenue £ 2,400