BOOKKEEPING CERTIFICATION EXAM QUESTIONS WITH COMPLETE ANSWERS

BOOKKEEPING CERTIFICATION EXAM QUESTIONS WITH COMPLETE ANSWERS Centrum Services purchased $36,000 worth of equipment. The equipment has an estimated useful life of five years and no salvage value. Using the straight-line method, the depreciation for the first month is -ANSWER- $600. On a worksheet, the adjusting entry to account for depreciation of equipment consists of a -ANSWER- debit to Depreciation Expense and a credit to Accumulated Depreciation. The adjusting entry to account for use of prepaid insurance consists of -ANSWER- a debit to Insurance Expense and a credit to Prepaid Insurance. If an adjusting entry relating to prepaid insurance is not entered onto the worksheet, assets on the balance sheet -ANSWER- will be overstated. The adjusting entry to account for use of supplies consists of a -ANSWER- debit to Supplies Expense and a credit to Supplies.