Free Printable Adjusting entries and Adjusted trial balance

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Adjusting entries and Adjusted trial balance

Total questions: 20

Worksheet time: 13mins

Name

Class

Date

Annual straight-line depreciation expense of a plant asset is calculated as the original cost of the plant asset divided by the years of estimated useful life.

True

False

All accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not.

True

False

The value of insurance coverage used is recorded as a debit to Insurance Expense.

True

False

The Income Summary account is one of the accounts used to adjust the Merchandise Inventory account at the end of the fiscal period.

True

False

The difference between an asset's account balance and its related contra account is called book value.

True

False

The Prepaid Insurance account must be adjusted at the end of a fiscal period because the account balance does not reflect the value of the insurance premiums that expired during the period.

True

False

Accrued interest income on notes receivable is calculated using all of the following except the

annual interest rate

term of the note

principal

date of the note

The journal entry to adjust Merchandise Inventory when beginning merchandise inventory is $125,000.00 and ending merchandise inventory is $115,000.00 would be

debit Merchandise Inventory, $10,000.00 and credit Income Summary, $10,000.00

debit Income Summary, $10,000,00 and credit Merchandise Inventory, $10,000.00

debit Merchandise Inventory, $115,000.00 and credit Income Summary, $115,000.00

debit Income Summary, $115,000.00 and credit Merchandise Inventory, $115,000.00

Refer to the expenses that are already incurred, used, utilized or consumed but have not yeen been paid.

Prepaid Expenses

Unearned Expenses

Accrued Expenses

Accounts Expense

10.

Refer to income or revenue already earned but has not yet been collected.

Unearned Revenue

Accrued Income

Prepaid Income

Service Revenue

11.

Represent revenue or income already collected but not yet earned; also referred to as advances from customers.

Accrued Income

Service Revenue

Unearned Revenue

Sales Revenue

12.

Represent advance payments made for expenses which have not yet been incurred, used, utilized or consumed.

Accrued Expenses

Unearned Expenses

Prepaid Expenses

Accounts Expense

13.

Adjusting entries are necessary to

Update and correct the accounts at the end of the period

balance the books at the end of the period

record the sales of the period

ensure the equality of the debits and credits

14.

The adjusting entry to record an accrued expense results in which of the following types of accounts being debited and credited?

Asset/Revenue

Asset/Liability

Expense/Asset

Expense/Liability

15.

The adjusting entry to record an accrued revenue results in which of the following types of accounts being debited and credited?

Asset/Revenue

Asset/Liability

Expense/Asset

Expense/Liability

16.

Office Equipment was purchased on May 1, 2017 at a cost of P 140,000 with a salvage value of P 20,000. The equipment’s useful life is five years. How much is the depreciation expense on December 31, 2017.

Php 24,000

Php 10,000

Php 16,000

Php 28,000

17.

On September 1, 2017, the company collected P72,000 rent in advance. A debit to Cash and a credit to Unearned Revenue was made. The tenant was paying for one year's rent. How much is the Rental Revenue to be recorded in the adjusting entry on Dec. 31, 2017?

Php 6,000

Php 24,000

Php 30,000

Php 36,000

18.

CHS Hardware borrowed P 120,000 at 12% interest on February 1, 2017. The amount will be paid after 1 year. No entry was entered in the journal to take up the interest. How much is the interest expense to be recorded on Dec. 31, 2017.

Php 14,400

Php 10,800

Php 12,000

Php 13,200

19.

On October 1, 2017 the company paid P 18,000 for a one-year insurance policy. Insurance Expense was debited and Cash was credited. The account to be debited and its amount to be recorded on Dec. 31, 2017 is

Insurance Expense/ Php 13,500

Prepaid Insurance/ Php 13,500

Insurance Expense/ Php 4,500

Prepaid Insurance/ Php 4,500

20.

On Nov. 1, 2017, Ms. Cruz, owner of Labada Express, received P 60,000 as advance payment from Hotel Dolores for laundry of assorted garments. Assuming, 60% of the unearned revenue has been rended on Dec. 31, 2017, what is the account to be credited and its amount?

Unearned Revenue/ Php 36,000

Laundry Revenue/ Php 36,000

Unearned Revenue/ Php 24,000

Laundry Revenue/ Php 24,000

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Adjusting entries and Adjusted trial balance

Total questions: 20

Worksheet time: 13mins

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