Homework Answers
The answer is Option b.
Explanation:
(i) The expired portion of an expense and earned portion of the revenue are to be adjusted at the end of the accounting period. Hence, Prepaid Insurance and Unearned revenue require adjustment.
(ii) Not all the accounts are to be adjusted at the end of the period. Generally, Accrued and Deferred Revenues and Expenses are adjusted.
(iii) An adjustment of accrued or deferred revenues and expenses will effect both income statement and balance sheet.
(iv) The expired portion of insurance paid in advance is charged as an expense and the remaining is to be recorded as prepaid insurance. Here, the expired portion is $2,000 (for 2 months) and the unexpired portion is $4,000 (for 4 months). Hence, Prepaid Insurance should be recorded at $4,000.
Add Answer to:
Determine whether the following statements are true or false, then mark the appropriate multiple choice answer....
. Mark the following statements as True or False then select the corresponding multiple choice answer...
. Mark the following statements as True or False then select the corresponding multiple choice answer All intangible assets purchased by a company are amortized over the lesser of their useful or legal life with no salvage value. Capital expenditures are added to the book value of an asset and depreciated over the remaining life. T_Recording depreciation expense through an adjusting entry is an example of an accrual. A. True, True, True B. True, False, False rue D. False, True,...
The following shows the unadjusted trial balance relating to Mark Wall Consulting Services for the accounting...
The following shows the unadjusted trial balance relating to Mark Wall Consulting Services for the accounting period ending December 31, 2007. Mark Wall Consulting Trial Balance as at December 31 2007 Requirements: 1. Journalize the following adjusting entries and prepare an adjusted trial balance as at December 31 2007 a. Supplies used during the period - $5000 b. All of the prepaid insurance expired at year end c. Depreciation expense – Building : $50,000 d. Depreciation expense – Furniture &...
Part V. True/False (5 points) For each question below, please mark if the statement is "True"...
Part V. True/False (5 points) For each question below, please mark if the statement is "True" or "False". T F 1. A purchase of Supplies with Cash was incorectly recorded as a debit to Prepaid Insurance and Credit to Accounts Payable. A trial balance would not uncover this error. T F 2. Adjusting entries sometimes affect the cash account. T F 3. GAAP is set by the FICPA, SEC, and PCAOB. T F 4. A shark would be considered Property,...
Answer the following as True or False, then select the correct multiple-choice answer: _____ The periodic...
Answer the following as True or False, then select the correct multiple-choice answer: _____ The periodic inventory method requires an adjusting entry for a loss at the end of the period. _____ In periods of declining prices, periodic FIFO will have a lower net income than periodic LIFO. _____ The gross profit method of estimating inventory can be used as a substitute for a physical inventory count under the periodic inventory method. A. True, True, True B. False, False, False...
Prepaid rent has a balance of $6,000 that was paid on July 1st for 6 months...
Prepaid rent has a balance of $6,000 that was paid on July 1st for 6 months of rent. The date is now August 31st. What should the adjusting journal entry be to correct the prepaid rent balance? Debit Rent Expense $1,000 and Credit Prepaid Rent $1,000 Debit Insurance Expense $2,000 and Credit Prepaid Insurance $2,000 O Debit Rent Expense $2,000, Credit Prepaid Rent $2,000 O Debit Prepaid Rent $2,000 and Credit Rent Expense $2,000 Identify the account below that is...
Which of the following statements are true? Multiple Choice If the trial balance is in balance,...
Which of the following statements are true? Multiple Choice If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions The trial balance is a book of original entry. The trial balance is another name for the balance sheet as long as debits balance with credits. Another name for trial balance is chart of accounts. The trial balance is a list of all accounts from the ledger with their balances at...
1. ) The Prepaid Insurance account has a balance of $200 less in the work sheet's...
1. ) The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a Select one: a. $200 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. b. $200 entry to Prepaid Insurance in the work sheet's Adjustments Debit column. c. $200 entry to Insurance Expense in the work sheet's Adjustments Credit column. d. $400 entry...
Excel Trainers, Inc. Worksheet Month Ended January 31 Adjustments Debit Credit 2009 Adjusted Trial Balance Debit...
Excel Trainers, Inc. Worksheet Month Ended January 31 Adjustments Debit Credit 2009 Adjusted Trial Balance Debit Credit Trial Balance Debit Credit 60,000 10,000 19,000 36,000 64,000 5,000 12,000 30,000 3,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Dep. - Equipment Accounts Payable Notes Payable Unearned Revenue Interest Payable Salaries Payable Common Stock Retained Earnings Service Income Salaries Expense Insurance Expense Depreciation Expense Supplies Expense Utilities Expense Interest Expense Totals 96,000 7,000 70,000 28,000 2002 1800 6,000 150g report. i)...
balance at the end of the month: Credit 875 The Lemur Golf Company Unadjusted Trial Balance...
balance at the end of the month: Credit 875 The Lemur Golf Company Unadjusted Trial Balance September 30, 2019 Account Name Debit Cash 21,610 Accounts Receivable 11,900 Prepaid Insurance 6,000 Supplies 1,820 Equipment 8,750 Accumulated Depreciation - Equip Automobile 26,750 Accounts Payable Unearned Golfing Revenue Contributed Capital Dividends 2,400 Retained Earnings Golfing Adventure Revenue Golf Lesson Revenue Salaries Expense 28,210 Rent Expense 13,790 Telephone Expense 5,250 Travel Expense 1,260 Interest Expense 14,870 142,610 10,585 2,800 37,800 20,000 55,550 15,000 142,610...
2. The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet...
2. The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30 for Abigail Trucking: $42,600 83,400 28,000 Accounts Payable Accounts Receivable Accumulated Depreciation-Trucks Cash Common Stock Prepaid Insurance Prepaid Rent Retained Earnings Salaries Payable Trucks Supplies Unearned Fees 100,000 6,500 12,000 215,000 12,500 206,000 4,700 5,000 Prepare a classified balance sheet.
. Mark the following statements as True or False then select the corresponding multiple choice answer All intangible assets purchased by a company are amortized over the lesser of their useful or legal life with no salvage value. Capital expenditures are added to the book value of an asset and depreciated over the remaining life. T_Recording depreciation expense through an adjusting entry is an example of an accrual. A. True, True, True B. True, False, False rue D. False, True,...
Part V. True/False (5 points) For each question below, please mark if the statement is "True" or "False". T F 1. A purchase of Supplies with Cash was incorectly recorded as a debit to Prepaid Insurance and Credit to Accounts Payable. A trial balance would not uncover this error. T F 2. Adjusting entries sometimes affect the cash account. T F 3. GAAP is set by the FICPA, SEC, and PCAOB. T F 4. A shark would be considered Property,...
Prepaid rent has a balance of $6,000 that was paid on July 1st for 6 months of rent. The date is now August 31st. What should the adjusting journal entry be to correct the prepaid rent balance? Debit Rent Expense $1,000 and Credit Prepaid Rent $1,000 Debit Insurance Expense $2,000 and Credit Prepaid Insurance $2,000 O Debit Rent Expense $2,000, Credit Prepaid Rent $2,000 O Debit Prepaid Rent $2,000 and Credit Rent Expense $2,000 Identify the account below that is...
Which of the following statements are true? Multiple Choice If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions The trial balance is a book of original entry. The trial balance is another name for the balance sheet as long as debits balance with credits. Another name for trial balance is chart of accounts. The trial balance is a list of all accounts from the ledger with their balances at...
Excel Trainers, Inc. Worksheet Month Ended January 31 Adjustments Debit Credit 2009 Adjusted Trial Balance Debit Credit Trial Balance Debit Credit 60,000 10,000 19,000 36,000 64,000 5,000 12,000 30,000 3,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Dep. - Equipment Accounts Payable Notes Payable Unearned Revenue Interest Payable Salaries Payable Common Stock Retained Earnings Service Income Salaries Expense Insurance Expense Depreciation Expense Supplies Expense Utilities Expense Interest Expense Totals 96,000 7,000 70,000 28,000 2002 1800 6,000 150g report. i)...
balance at the end of the month: Credit 875 The Lemur Golf Company Unadjusted Trial Balance September 30, 2019 Account Name Debit Cash 21,610 Accounts Receivable 11,900 Prepaid Insurance 6,000 Supplies 1,820 Equipment 8,750 Accumulated Depreciation - Equip Automobile 26,750 Accounts Payable Unearned Golfing Revenue Contributed Capital Dividends 2,400 Retained Earnings Golfing Adventure Revenue Golf Lesson Revenue Salaries Expense 28,210 Rent Expense 13,790 Telephone Expense 5,250 Travel Expense 1,260 Interest Expense 14,870 142,610 10,585 2,800 37,800 20,000 55,550 15,000 142,610...
2. The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30 for Abigail Trucking: $42,600 83,400 28,000 Accounts Payable Accounts Receivable Accumulated Depreciation-Trucks Cash Common Stock Prepaid Insurance Prepaid Rent Retained Earnings Salaries Payable Trucks Supplies Unearned Fees 100,000 6,500 12,000 215,000 12,500 206,000 4,700 5,000 Prepare a classified balance sheet.
Most questions answered within 3 hours.
-
a) Draw two water molecules.
b) Clearly name and label the type of bond that exists...
asked 32 minutes ago -
C - Language
Write a loop that sets each array element to the sum of itself...
asked 1 hour ago -
(63
#14)
which of the following statments best describes how chamging
the concentration of the substances...
asked 5 hours ago -
In the following reaction, which element is undergoing
oxidation: Na2SO3 + N2O --> N2 + Na2SO4...
asked 6 hours ago -
Which of the following pairs of ions have the same electron
configuration?
I: Br− and Se2−...
asked 8 hours ago -
The Foremost Composite Materials Company is planning a two-day
sales conference for October 19-20. The conference...
asked 8 hours ago -
3) Illustrate the observed pattern of relatedness of organisms
versus adaptations to specific conditions. This means...
asked 9 hours ago -
In winter a lake has a 0.35 m thick ice layer over 1.10 m of
water....
asked 10 hours ago -
Assuming the following has been encrypted with a Vigenere cipher
below, use the method(s) and assumptions...
asked 10 hours ago -
How would I use switch statements to write a program that will
take an input of...
asked 10 hours ago -
Imagine a reaction in which methane gas combusts at a constant
pressure of 1 atm and...
asked 10 hours ago -
Two parallel wires (each 12 m in length) are separated by a
distance of 0.065 m...
asked 10 hours ago