MIAMI UNIVERSITY EXAM 1-ACC 221 QUESTIONS AND VERIFIED ANSWERS Journalize the Adjusting Entry for Unearned Revenue: On January 1 we are given $2000 for 4 months of labor, and it is now February 28. What is the adjusting entry? - ANSWER-Unearned Revenue

MIAMI UNIVERSITY EXAM 1-ACC 221 QUESTIONS AND VERIFIED ANSWERS Journalize the Adjusting Entry for Unearned Revenue: On January 1 we are given $2000 for 4 months of labor, and it is now February 28. What is the adjusting entry? - ANSWER-Unearned Revenue $500 Dr. Service Revenue $500 Cr. What is shown on the Income Statement - ANSWER-Revenues, Expenses, Net Income What Type of Account is Cost of Goods Sold? - ANSWER-Expense What is on the Balance Sheet? - ANSWER-Total Assets (Sum of Assets - accumulated depreciation), Total Liabilities (Sum of Liabilities), Total Stockholder's Equity (Retained Earnings + Common Stock); Checks for equality in the accounting equation Balance Sheet is a - ANSWER-Point in Time Financial Statement What accounts are 0 on the Post Closing Trial Balance? - ANSWER-Revenue and Expense Accounts What Retained Earnings Amount do you use on the Post-Closing Trial Balance? - ANSWER-The one that was calculated for the Balance Sheet Adjusting entries never use - ANSWER-Cash What day of the month are adjusting entries preformed? - ANSWER-The last day Normal Balance of Depreciation Expense - ANSWER-Debit Normal Balance of Supplies Expense - ANSWER-Debit Accounting Equation - ANSWER-Assets = Liabilities + Owner's Equity Asset, Liability , or Equity? Cash - ANSWER-Asset Asset, Liability , or Equity? Supplies - ANSWER-Asset Asset, Liability , or Equity? Accounts Receivable - ANSWER-Asset Asset, Liability , or Equity? Equipment - ANSWER-Asset Asset, Liability , or Equity? Inventory - ANSWER-Asset Asset, Liability , or Equity? Accumulated Depreciation - ANSWER-Contra- Asset