WorksheetsAdjusting Entries
Total questions: 19
Worksheet time: 57mins
Adjusting entries are necessary because accounts are allowed to become inaccurate between financial statement dates.
True
False
Whenever supplies are used (like a paper clip from a supply drawer), the Supplies Expense should immediately be debited.
True
False
A post-closing Trial Balance (which is done after closing entries) includes no Revenue or Expense accounts.
True
False
The Accumulated Depreciation account is decreased when it is credited.
True
False
The source of data for preparing closing entries is the:
trial balance
worksheet
worksheet plus general journal
all of the above are possible
When all closing entries have been posted, a net income will be shown on the:
credit side of the Drawings account
debit side of the Capital account
credit side of the Capital account
debit side of the Drawings account
Which of the following is NOT closed out at the end of the accounting period?
Wages
Accounts Receivable
Bank Charges
Loss on Sale of Equipment
Which of the following are temporary accounts?
Accounts Receivable, Accounts Payable
Fees Earned, Drawings
Capital, Drawings
Bank Loan, Mortgage Payable
Using the declining balance method of depreciation, calculate the depreciation (30%) for a Truck bought for $65,000 on January 1st of the current year if it is now March 31st.
$19,500
$1,626
$4,875
$9,750
The Accumulated Depreciation account is known as a "contra" account because even though it is a ____________ account, it has a ________________ balance.
asset, credit
liability, debit
asset, debit
liability, credit
A red Dodge Viper was bought on July 1 of the current year for $180,000. It is expected to last 20 years with 0 Salvage Value. Calculate the amount of depreciation as of December 31st of the current year using the straight line method of depreciation.
$4500
$9000
$54,000
$2,700
A silver Nissan 350Z was bought for $80,000 on January 1st of the current year. Calculate the depreciation for this vehicle as of December 31st of the current using the declining balance method (30%).
$12,000
$20,000
$40,000
$24,000
We purchased Indian Insurance (Prepaid Insurance) on June 1st, 2020 for $252. What is the Insurance Expense as of December 31, 2020?
$105
$50.40
$147
none of the above
Unearned revenue is a(n) _________________ account.
Revenue
Expense
Asset
Liability
Accumulated Depreciation is a(n) ________________ account.
Asset
Liability
Expense
Revenue
At the beginning of Year 1, the Supplies account had a debit balance of $2,300. During the year, the business purchased $900 of supplies. An inventory count at the end of the year revealed that $650 of supplies remained. The adjusting entry as a result of this information is:
DR Supplies Expense $1,650, credit Supplies $1,650
DR Supplies Expense $3,850, credit Accumulated Depreciation -Supplies $3,850
DR Supplies Expense $750, credit Supplies $750
DR Supplies Expense $2,550, credit Supplies $2,550
A business purchased a one-year insurance policy costing $480 on April 15 of the current year. The journal entry to record this transaction is:
a debit to Insurance Expense $480, credit Bank $480
debit Prepaid Insurance $480, credit Bank $480
debit Prepaid Insurance $340, credit Insurance Expense $340
debit Insurance Expense $340, credit Prepaid Insurance $340
Which of the following statements concerning the Accumulated Depreciation account is false?
it appears on the balance sheet
it is an asset account
it has a credit balance
it is closed at the end of the fiscal period
Closing entries are made at the end of the fiscal period so that:
the balance sheet will be up to date
the Capital account will be up to date
the income statement accounts will begin the next fiscal period with a zero balance
both b) and c)
