4.03 - 4.05 Test Review

At the end of the accounting period, the Prepaid Insurance account needs to be adjusted by $721 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, $721; credit Prepaid Insurance, $721.

• In the Adjustments columns, debit Prepaid Insurance, $721; credit Insurance Expense, $721.

• In the Income Statement columns, debit Insurance Expense, $721; credit Prepaid Insurance, $721.

• In the Trial Balance columns, debit Prepaid Insurance, $721; credit Insurance Expense, $721.

What is the extension of Federal Income Tax Payable after adjustments?

• $3,450 in the Income Statement Debit column

• $3,450 in the Income Statement Credit column

• $3,450 in the Balance Sheet Debit column

• $3,450 in the Balance Sheet Credit column

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.

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.

Supplies-Store has a balance of $2,200. At the end of the month, a physical count of the Supplies-Store items shows $1,200 is on hand. How is the adjusting entry to Supplies-Store recorded on a multicolumn trial balance worksheet?

• In the Adjustments columns, debit Supplies-Store, $1,000; credit Supplies Expense-Store, $1,000.

• In the Adjustments columns, debit Supplies Expense-Store, $1,000; credit Supplies-Store, $1,000.

• In the Adjustments columns, debit Supplies-Store, $1,200; credit Supplies Expense-Store, $1,200.

• In the Adjustments columns, debit Supplies Expense-Store, $1,200; credit Supplies-Store, $1,200.

At the end of the year, Super Shipping has calculated its federal income tax amount for the year to be $10,000. Super Shipping has already made federal income tax payments in the amount of $4,000. How is the adjusting entry for Federal Income Tax Expense recorded on a multicolumn trial balance worksheet?

• In the Adjustments columns, debit Federal Income Tax Expense, $4,000; credit Federal Income Tax Payable, $4,000.

• In the Adjustments columns, debit Federal Income Tax Expense, $6,000; credit Federal Income Tax Payable, $6,000.

• In the Adjustments columns, debit Federal Income Tax Expense, $10,000; credit Federal Income Tax Payable, $10,000.

• In the Adjustments columns, debit Federal Income Tax Expense, $14,000; credit Federal Income Tax Payable, $14,000.

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.

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.

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

Westin Supply sold store supplies on account to Kayla’s Gift Shop for $256 and Kayla’s Gift Shop recorded the transaction as shown in the figure below. The correct posting of this General Journal Entry to the general ledger is:

• debit Supplies-Store, $256; credit Accounts Payable-Control, $256, Accounts Payable/Westin Supply, $256.

• debit Supplies-Store, $256; credit Accounts Payable/Westin Supply, $256.

• debit Accounts Payable-Control, $256; credit Accounts Payable/Westin Supply, $256.

• debit Accounts Payable/Westin Supply, $256; credit Supplies-Store, $256.

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.