Accounting Questions and Graded Answers.
Which of the accounts below are considered accrued expenses? - Wages expense, Interest
expense
Define the Salaries payable account by selecting the appropriate statement below. - It
reports amounts owed to employees and is a liability.
Able Company owes interest on a note for a loan. The note is dated December 1 and is due on
February 1. On December 31, interest expense should be accrued for the following period: -
December 1 to December 31
By the end of the accounting period, employees have earned salaries of $500, but they will not
be paid until the following pay period. Which of the following is the proper adjusting entry? -
Debit Salaries expense for $500.
A company borrowed $4,000 from the bank at an interest rate of 9%. By the end of the
accounting period, the loan had been outstanding for 30 days. Demonstrate the required adjusting
entry by choosing the correct statement below. - Debit Interest expense for $30.
Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year.
On January 4 of the current year, total salaries for the five-day week are paid. The journal entry
to record the payment of salaries on January 4 includes: - Debit to Salaries Payable for
$500; Debit to Salaries Expense for $2,000
Which of the following describes accrued revenue? (Check all that apply) - They refer to
revenues that are earned in a period, but have not been received and are unrecorded.
They refer to earnings which have been earned but not yet billed.
, The adjustment causes an increase in an asset account and an increase in a revenue account.
Accounts receivable is usually increased when accruing revenues.
In order to prepare a balance sheet using the account balances on an adjusted trial balance, all of
the
________
(expenses/assets) and their debit balances are transferred to the balance sheet as well as all of the
_____________
(liabilities/revenues) and their
_________
(debit/credit) balances. - assets; liabilities; credit
Chimney Sweeps provided chimney cleaning services to several clients during the month of
February. Chimney's customers have not yet been billed. Chimney's customers owe $2,000 to
Chimney. How will Chimney Sweeps record this transaction? - Debit accounts receivable
and credit services revenue
accrued revenue - are earned in a period that are both unrecorded and not yet received in
cash
On December 28, I. Greasy Catering Company completed $600 of catering services. As of
December 31, the customer had not been billed nor had the transaction been recorded.
Demonstrate the required adjusting entry by choosing the correct statement below. - Debit
Accounts receivable for $600.
Determine which of the following transactions may require adjustments. (Check all that apply.) -
a 24-month insurance policy was prepaid
Supplies were purchased at the beginning of the year, but not all were used.
Which of the accounts below are considered accrued expenses? - Wages expense, Interest
expense
Define the Salaries payable account by selecting the appropriate statement below. - It
reports amounts owed to employees and is a liability.
Able Company owes interest on a note for a loan. The note is dated December 1 and is due on
February 1. On December 31, interest expense should be accrued for the following period: -
December 1 to December 31
By the end of the accounting period, employees have earned salaries of $500, but they will not
be paid until the following pay period. Which of the following is the proper adjusting entry? -
Debit Salaries expense for $500.
A company borrowed $4,000 from the bank at an interest rate of 9%. By the end of the
accounting period, the loan had been outstanding for 30 days. Demonstrate the required adjusting
entry by choosing the correct statement below. - Debit Interest expense for $30.
Sheldon Company had $500 for one day of accrued salaries on December 31 of the prior year.
On January 4 of the current year, total salaries for the five-day week are paid. The journal entry
to record the payment of salaries on January 4 includes: - Debit to Salaries Payable for
$500; Debit to Salaries Expense for $2,000
Which of the following describes accrued revenue? (Check all that apply) - They refer to
revenues that are earned in a period, but have not been received and are unrecorded.
They refer to earnings which have been earned but not yet billed.
, The adjustment causes an increase in an asset account and an increase in a revenue account.
Accounts receivable is usually increased when accruing revenues.
In order to prepare a balance sheet using the account balances on an adjusted trial balance, all of
the
________
(expenses/assets) and their debit balances are transferred to the balance sheet as well as all of the
_____________
(liabilities/revenues) and their
_________
(debit/credit) balances. - assets; liabilities; credit
Chimney Sweeps provided chimney cleaning services to several clients during the month of
February. Chimney's customers have not yet been billed. Chimney's customers owe $2,000 to
Chimney. How will Chimney Sweeps record this transaction? - Debit accounts receivable
and credit services revenue
accrued revenue - are earned in a period that are both unrecorded and not yet received in
cash
On December 28, I. Greasy Catering Company completed $600 of catering services. As of
December 31, the customer had not been billed nor had the transaction been recorded.
Demonstrate the required adjusting entry by choosing the correct statement below. - Debit
Accounts receivable for $600.
Determine which of the following transactions may require adjustments. (Check all that apply.) -
a 24-month insurance policy was prepaid
Supplies were purchased at the beginning of the year, but not all were used.
