WorksheetsAccounting Adjusting Entries Tkelly
Total questions: 15
Worksheet time: 15mins
Adjusting entries should be made
Prior to posting to the General Journal
Prior to posting to the General Ledger
After posting to the General Ledger
After Posting to the Balance Sheet
After completing adjustments the worksheet must
Still be in balance
Contain only negative numbers
Have more debits than credits
Havre credits than debits
If you paid for insurance in advance for a year, and some time elapses, what account will need to be adjusted
Supplies
Depreciation Expense
Prepaid Insurance
Equipment
Adjusting entries are required due to
Mistakes
Changes in circumstances, for example increased depreciation
Inventory adjustments, such as when inventory is stolen or missing.
All of the above
After adjustments have made if the debits and credits are in balance:
There have been no posting errors.
There still could have been posting errors.
The company is profitable.
GAAP principles have been followed.
If an accountant realizes an earlier posting mistake during an accounting period, she should:
Go back and erase the original entry and then replace it correctly.
Inform the IRS
Make (an) adjusting entry(ies)
None of these
Which of these would likely require adjusting entries
Expiration of prepaid insurance.
The accrual of unpaid expenses.
Receipt of unearned income
All of these would require adjustments.
Adjusting entries are required when using
The cash basis of accounting
The accrual basis of accounting
Double entry accounting
Both B and C
Recognizing that a loss of value has occurred to vehicles during an accounting period requires a debit to
Vehicles
Cash
Accounts Payable
Depreciation Expense
On January 1 a company purchased billboard advertising for 12 months for $6,000. On January 31, an adjusting credit was made to the __________account for $__________.
Prepaid Advertising/$500
Advertising Expense/$500
Cash/$1,000
Accrued Advertising/$500
$3,000 worth of service has been provided to a customer who paid advance amount of $4,000. The accounting period has come to an end with 25% of the work undone. The following debit/credit is required:
service revenue/unearned revenue
unearned revenue/service revenue
accrued revenue/cash
service expense/services
Equipment costing $60,000 has useful life of 5 years and its estimated salvage value is $10,000. Depreciation is provided using the straight line depreciation method. At the end of one year which accounts will be debited/credited
Depreciation Expense/Equipment
Prepaid Equipment/Depreciation expense
Depreciation expense/accumulated depreciation
None of these
On December 1, 2020, Republica Importing purchased $4,500 of supplies and recorded as an asset. On December 31, 2020, Republica checked supplies and found $1,200 in the inventory. Prepare the adjusting journal entry for December 31
Supplies expense/supplies both $3,300
Supplies/supplies expense both $3,300
Supplies/cash both $4,500
Accumulated supplies/supplies expense both $1,200
At the end of the month Shop Rong owes salaries which will not be paid until the next accounting period. Which account should receive an adjusting debit entry?
Salaries Payable
Salaries expense
Accounts payable
Accounts receivable
When you generate revenue in one accounting period, but don’t recognize it until a later period, you need to make a(n) ___________________ adjustment
Prepaid expense
Unearned income
Accrued Revenue
Accumulated depreciation
