Question

Section 3-ACCRUED EXPENSES (ACCRUED LIABILITIES) Your company has a 5-day workweek with a weekly payroll of $20,000 distributed each Friday. If an accounting period ends on a Tuesday, the adjusting journal entry is: a Salary Expense 4,000 Salary Payable b. Salary Expense 8,000 Salary Payable 8,000 c. Accrued Salary 8,000 Salary Payable 8,000 d. Deferred Salary 4,000 Salary Payable 4,000 4,000 2. If a company receives a December electric bill for $1,000 and decides to pay it in January a. no adjustment is required b. the company must record a journal entry that debits Utilities Expense and credits Utilities Payable c. the company must record a journal entry that debits an asset account and credits an expense account d. none of the above 14,000 Your company has a 5-day workweek and a weekly payroll of $35,000 that it distributes each Friday. When an accounting period ends on a Thursday, which of the following entries will you record? a. Salary Payable 14,000 Salary Expense 14,000 b. Salary Expense Salary Payable 14,000 c. Salary Payable 28,000 Salary Expense 28,000 d. Salary Expense 28,000 Salary Payable 28,000 On November 1, your calendar year firm receives a $5,000 invoice for magazine ads that will run for the next 5 months. If you remit $1,000 on November 1 and debit Advertising Expense, then pay the remainder in January, which of the following entries will you record at year end? a. Advertising Expense 1,000 1,000 Cash b. Advertising Expense 2,000 2,000 Advertising Payable 1,000 c. Advertising Expense Advertising Payable d. Advertising Expense 5,000 5,000 Advertising Payable 1,000

Answer 1

1)Answer is Option b.

$20000*2/5=$8000

Monday and Tuesday are two days for which the expense has to be booked.

So Salary exp acc $8000 -

To Salary payable - $8000

2) Answer is Option b.

The company must pass the following entry;

Utility expense acc. $1000. -

To Utitlity exp payable. - $1000

3) Answer is Option d.

They must pass the following entry;

Salary exp acc. $28000. -

To Salary payable. - $28000

($35000*4/5)=$28000

4) Answer is Option b.

They must pass the following entry;

Adv exp acc. $2000. -

Adv exp payable. - $2000

($5000*2/5)= $2000