24-25 Acct 2 Focused Day 1Adnjsting, Closing, Payroll, Journal E

The balance in Prepaid Insurance is $6,000, and $2,400 worth of insurance has expired. What is the adjusting entry?

• Debit Insurance Expense, $2,400; Credit Prepaid Insurance, $2,400

• Debit Prepaid Insurance, $2,400; Credit Insurance Expense, $2,400

• Debit Insurance Expense, $6,000; Credit Prepaid Insurance, $6,000

• Debit Prepaid Insurance, $6,000; Credit Insurance Expense, $6,000

Which account is debited when supplies are used during the period?

• Supplies

• Accounts Payable

• Supplies Expense

• Cash

What is the correct adjusting entry if $8,000 in supplies were purchased and $2,500 remain at year-end?

• Debit Supplies, $2,500; Credit Supplies Expense, $2,500

• Debit Supplies Expense, $2,500; Credit Supplies, $2,500

• Debit Supplies, $5,500; Credit Supplies Expense, $5,500

• Debit Supplies Expense, $5,500; Credit Supplies, $5,500

Which account is credited in the adjusting entry for federal income tax payable?

• Federal Income Tax Expense

• Income Tax Receivable

• Federal Income Tax Payable

• Cash

At the end of the year, $12,000 in Federal Income Tax Expense was recorded. What is the correct journal entry?

• Debit Federal Income Tax Expense, $12,000; Credit Federal Income Tax Payable, $12,000

• Debit Federal Income Tax Payable, $12,000; Credit Federal Income Tax Expense, $12,000

• Debit Cash, $12,000; Credit Federal Income Tax Payable, $12,000

• Debit Federal Tax, $12,000; Credit Salaries Expense, $12,000

Net income for the year is $45,000. What is the closing entry?

• Debit Retained Earnings, $45,000; Credit Income Summary, $45,000

• Debit Income Summary, $45,000; Credit Retained Earnings, $45,000

• Debit Retained Earnings, $45,000; Credit Net Income, $45,000

• Debit Net Income, $45,000; Credit Retained Earnings, $45,000

A company declared dividends of $20,000. What is the closing entry?

• Debit Dividends Payable, $20,000; Credit Retained Earnings, $20,000

• Debit Retained Earnings, $20,000; Credit Dividends Payable, $20,000

• Debit Cash, $20,000; Credit Dividends Payable, $20,000

• Debit Dividends Payable, $20,000; Credit Cash, $20,000

What is the purpose of closing entries?

• Record transactions for the period

• Adjust asset and liability accounts

• Prepare temporary accounts for the next period

• Update stockholder equity

The account “Salaries Payable” is usually involved in:

• Closing entries

• Payroll accrual adjusting entries

• Stock transactions

• Depreciation

A $500 administrative supply purchase was paid in cash. What is the journal entry?

• Debit Cash, $500; Credit Supplies-Administrative, $500

• Debit Purchases, $500; Credit Cash, $500

• Debit Supplies-Administrative, $500; Credit Cash, $500

• Debit Supplies-Administrative, $500; Credit Accounts Payable, $500