Accounting 2301 Exam #2 Questions
With Correct Answers
Adjusting the accounts is the process of - CORRECT ANSWER✔✔-
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updating the accounts at the end of the period.
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Which of the following is an example of a deferral (or prepaid) adjusting
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entry? - CORRECT ANSWER✔✔-Recording the usage of office supplies
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during the period.
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For each transaction, identify what type of adjusting entry would be
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needed. Select from the following four types of adjusting entries:
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deferred expense, deferred revenue, accrued expense, and accrued
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revenue. - CORRECT ANSWER✔✔-Apr. 1 Paid six months of rent, $4,800.
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- Deferred expense
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Apr. 10 Received $1,200 from customer for six month service contract
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that began April 1. - Deferred revenue
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Apr. 15 Purchased a computer for $1,000.
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Deferred expense |
, Apr. 18 Purchased $300 of office supplies on account. - Deferred
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expense
Apr. 30 Work performed but not yet billed to customer, $500 - Accrued
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revenue
Apr. 30 Employees earned $600 in salaries that will be paid May 2. -
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Accrued expense |
On November 1, Smart Touch Learning pays $30,000 for the next
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three months of its rent (November
| | | | |
through January). At the end of its fiscal period on December 31 Smart
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Touch Learning would record which adjusting entry? - CORRECT
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ANSWER✔✔-Debit: Rent Expense $20,000; Credit: Prepaid Rent | | | | | | |
$20,000
Smart Touch Learning purchases office equipment on December 1 for
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$57,000. The useful life of the furniture is 10 years and there is no
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residual value. What is the depreciation expense per month for the
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furniture? - CORRECT ANSWER✔✔-$ 475 | | | |
On December 1 Smart Touch Learning receives $10,000
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cash in advance from a client for performing e-learning services over the
| | | | | | | | | | |
next two months
| | | |
With Correct Answers
Adjusting the accounts is the process of - CORRECT ANSWER✔✔-
| | | | | | | | |
updating the accounts at the end of the period.
| | | | | | | |
Which of the following is an example of a deferral (or prepaid) adjusting
| | | | | | | | | | | | |
entry? - CORRECT ANSWER✔✔-Recording the usage of office supplies
| | | | | | | | |
during the period.
| |
For each transaction, identify what type of adjusting entry would be
| | | | | | | | | | |
needed. Select from the following four types of adjusting entries:
| | | | | | | | | |
deferred expense, deferred revenue, accrued expense, and accrued
| | | | | | | |
revenue. - CORRECT ANSWER✔✔-Apr. 1 Paid six months of rent, $4,800.
| | | | | | | | | |
- Deferred expense
| | |
Apr. 10 Received $1,200 from customer for six month service contract
| | | | | | | | | | |
that began April 1. - Deferred revenue
| | | | | |
Apr. 15 Purchased a computer for $1,000.
| | | | | |
Deferred expense |
, Apr. 18 Purchased $300 of office supplies on account. - Deferred
| | | | | | | | | | |
expense
Apr. 30 Work performed but not yet billed to customer, $500 - Accrued
| | | | | | | | | | | | |
revenue
Apr. 30 Employees earned $600 in salaries that will be paid May 2. -
| | | | | | | | | | | | | |
Accrued expense |
On November 1, Smart Touch Learning pays $30,000 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? - CORRECT
| | | | | | | | |
ANSWER✔✔-Debit: Rent Expense $20,000; Credit: Prepaid Rent | | | | | | |
$20,000
Smart Touch Learning purchases office equipment on December 1 for
| | | | | | | | | |
$57,000. The useful life of the furniture is 10 years and there is no
| | | | | | | | | | | | | |
residual value. What is the depreciation expense per month for the
| | | | | | | | | | |
furniture? - CORRECT ANSWER✔✔-$ 475 | | | |
On December 1 Smart Touch Learning receives $10,000
| | | | | | |
cash in advance from a client for performing e-learning services over the
| | | | | | | | | | |
next two months
| | | |
