Exam 2 Accounting 2301 || Answered Perfectly 100%.
Adjusting the accounts is the process of
A. recording transactions as they occur during the period.
B. zeroing out account balances to prepare for the next period.
C. subtracting expenses from revenues to measure net income.
D. updating the accounts at the end of the period. correct answers D. updating the accounts at the
end of the period.
Which of the following is an example of a deferral (or prepaid) adjusting entry?
A.Recording salaries expense for employees not yet paid.
B.Recording the usage of office supplies during the period.
C. Recording interest expense incurred on a notes payable not due until next year.
D. Recording revenue that has been earned but not yet received. correct answers C. Recording
the usage of office supplies during the period.
On November 1, Smart Touch Learning pays $ 15 comma 000 for the next three months of its
rent (November through January). At the end of its fiscal period on December 31 Smart Touch
Learning would record which adjusting entry?
A. Debit: Rent Expense $ 10,000; Credit: Prepaid Rent $ 10,000
B. Debit: Prepaid Rent $ 5,000; Credit: Rent Expense $ 5,000
C. Debit: Prepaid Rent $ 10,000; Credit: Rent Expense $ 10,000
D. Debit: Rent Expense $ 5,000; Credit: Prepaid Rent $ 5,000 correct answers A. Debit: Rent
Expense $10,000; Credit: Prepaid Rent $10,000
Smart Touch Learning purchases office equipment on December 1 for $ 54, 000. The useful life
of the furniture is 10 years and there is no residual value. What is the depreciation expense per
month for the furniture?
A. $ 100
,B.$ 5 ,400
C. $ 450
D.$ 4,500 correct answers C. $450
On December 1 Smart Touch Learning receives $ 6,000 cash in advance from a client for
performing e-learning services over the next two months (December 1 through January 31).
When preparing its adjusting entry at the end of the fiscal period on December 31, Smart Touch
Learning would
A.Debit: Cash $ 3,000; Credit: Unearned Revenue $ 3,000
B.Debit: Unearned Revenue $ 3,000; Credit: Service Revenue $ 3,000
C.Debit: Service Revenue $ 3,000; Credit Unearned Revenue $ 3,000
D.Debit: Cash $ 3,000; Credit: Service Revenue $ 3,000 correct answers B. Debit: Unearned
Revenue $3,000; Credit: Service Revenue $3,000
Smart Touch Learning pays its employee a monthly salary of $ 9,000 - half on the 15th of every
month and the other half on the first day of the next month. What adjusting entry would be made
at the end of the month to record accrued salaries expense?
A.Debit: Salaries Payable $ 4,500; Credit: Cash $ 4,500
B.Debit: Salaries Expense $ 4,500; Credit: Cash $ 4,500
C.Debit: Salaries Payable $ 4,500; Credit: Salaries Expense $ 4,500
D.Debit: Salaries Expense $ 4,500; Credit: Salaries Payable $ 4,500 correct answers D. Debit:
Salaries Expense $ 4,500; Credit: Salaries Payable $4,500
Smart Touch Learning pays its employee a monthly salary of $ 5,000 - half on the 15th of every
month and the other half on the first day of the next month. On the first of every month, what
journal entry would be recorded for the payment of cash to its employee?
A.Debit: Salaries Expense $ 2,500; Credit: Cash $ 2,500
B.Debit: Salaries Expense $ 2,500; Credit: Salaries Payable $ 2,500
C.Debit: Salaries Payable $ 2,500; Credit: Salaries Expense $ 2,500
, D.Debit: Salaries Payable $ 2,500; Credit: Cash $ 2,500 correct answers D. Debit: Salaries
Payable $2,500; Credit: Cash $2,500
The adjusted trial balance shows
A.amounts that may be out of balance.
B.revenues and expenses only.
C.account balances after adjustments.
D.assets and liabilities only. correct answers C. Account balances after adjustments
The adjusted trial balance is prepared after the adjustments have been journalized and posted.
correct answers True
An adjusting entry that debits Accounts Receivable is an example of a(n) ________.
A.deferred expense
B.accrued revenue
C.accrued expense
D.deferred revenue correct answers B. Accrued Revenue
An accrual adjusting entry records an expense after the cash is paid, or it records revenue before
the cash is received. correct answers False
Adjusting entries are needed to correctly measure the ________.
A.beginning balance in the Cash account
B.net income (loss) on the income statement
C.ending balance in the Cash account
D.net income (loss) on the balance sheet correct answers B. Net Income (loss) on the income
statement
Adjusting the accounts is the process of
A. recording transactions as they occur during the period.
B. zeroing out account balances to prepare for the next period.
C. subtracting expenses from revenues to measure net income.
D. updating the accounts at the end of the period. correct answers D. updating the accounts at the
end of the period.
Which of the following is an example of a deferral (or prepaid) adjusting entry?
A.Recording salaries expense for employees not yet paid.
B.Recording the usage of office supplies during the period.
C. Recording interest expense incurred on a notes payable not due until next year.
D. Recording revenue that has been earned but not yet received. correct answers C. Recording
the usage of office supplies during the period.
On November 1, Smart Touch Learning pays $ 15 comma 000 for the next three months of its
rent (November through January). At the end of its fiscal period on December 31 Smart Touch
Learning would record which adjusting entry?
A. Debit: Rent Expense $ 10,000; Credit: Prepaid Rent $ 10,000
B. Debit: Prepaid Rent $ 5,000; Credit: Rent Expense $ 5,000
C. Debit: Prepaid Rent $ 10,000; Credit: Rent Expense $ 10,000
D. Debit: Rent Expense $ 5,000; Credit: Prepaid Rent $ 5,000 correct answers A. Debit: Rent
Expense $10,000; Credit: Prepaid Rent $10,000
Smart Touch Learning purchases office equipment on December 1 for $ 54, 000. The useful life
of the furniture is 10 years and there is no residual value. What is the depreciation expense per
month for the furniture?
A. $ 100
,B.$ 5 ,400
C. $ 450
D.$ 4,500 correct answers C. $450
On December 1 Smart Touch Learning receives $ 6,000 cash in advance from a client for
performing e-learning services over the next two months (December 1 through January 31).
When preparing its adjusting entry at the end of the fiscal period on December 31, Smart Touch
Learning would
A.Debit: Cash $ 3,000; Credit: Unearned Revenue $ 3,000
B.Debit: Unearned Revenue $ 3,000; Credit: Service Revenue $ 3,000
C.Debit: Service Revenue $ 3,000; Credit Unearned Revenue $ 3,000
D.Debit: Cash $ 3,000; Credit: Service Revenue $ 3,000 correct answers B. Debit: Unearned
Revenue $3,000; Credit: Service Revenue $3,000
Smart Touch Learning pays its employee a monthly salary of $ 9,000 - half on the 15th of every
month and the other half on the first day of the next month. What adjusting entry would be made
at the end of the month to record accrued salaries expense?
A.Debit: Salaries Payable $ 4,500; Credit: Cash $ 4,500
B.Debit: Salaries Expense $ 4,500; Credit: Cash $ 4,500
C.Debit: Salaries Payable $ 4,500; Credit: Salaries Expense $ 4,500
D.Debit: Salaries Expense $ 4,500; Credit: Salaries Payable $ 4,500 correct answers D. Debit:
Salaries Expense $ 4,500; Credit: Salaries Payable $4,500
Smart Touch Learning pays its employee a monthly salary of $ 5,000 - half on the 15th of every
month and the other half on the first day of the next month. On the first of every month, what
journal entry would be recorded for the payment of cash to its employee?
A.Debit: Salaries Expense $ 2,500; Credit: Cash $ 2,500
B.Debit: Salaries Expense $ 2,500; Credit: Salaries Payable $ 2,500
C.Debit: Salaries Payable $ 2,500; Credit: Salaries Expense $ 2,500
, D.Debit: Salaries Payable $ 2,500; Credit: Cash $ 2,500 correct answers D. Debit: Salaries
Payable $2,500; Credit: Cash $2,500
The adjusted trial balance shows
A.amounts that may be out of balance.
B.revenues and expenses only.
C.account balances after adjustments.
D.assets and liabilities only. correct answers C. Account balances after adjustments
The adjusted trial balance is prepared after the adjustments have been journalized and posted.
correct answers True
An adjusting entry that debits Accounts Receivable is an example of a(n) ________.
A.deferred expense
B.accrued revenue
C.accrued expense
D.deferred revenue correct answers B. Accrued Revenue
An accrual adjusting entry records an expense after the cash is paid, or it records revenue before
the cash is received. correct answers False
Adjusting entries are needed to correctly measure the ________.
A.beginning balance in the Cash account
B.net income (loss) on the income statement
C.ending balance in the Cash account
D.net income (loss) on the balance sheet correct answers B. Net Income (loss) on the income
statement
