Question

The expense account, Salaries Expense, has an unadjusted balance of $151,000 on Thursday, December 31, 2017.    

The company operates five days a week with a daily payroll of $4,000. Employees are paid every Saturday for the workweek just completed (Monday through Friday). Determine the correct ending balance in Salaries Payable and Salaries Expense after the correct adjusting entry is made at year end:

	A.	Salaries Payable                   Salaries Expense $4,000                                  $155,000
	B.	Salaries Payable                   Salaries Expense $4,000 $147,000
	C.	Salaries Payable                   Salaries Expense $16,000    $16,000
	D.	Salaries Payable                   Salaries Expense $16,000    $135,000
	E.	Salaries Payable                   Salaries Expense $16,000    $167,000

1 points   

QUESTION 7

Answer the following statements as true or false, then select the correct multiple -choice answer:

1.   If dividends are declared during the year the company would close the dividend account by debiting retained earnings and crediting the dividend account.

   2.   A company that forgets to recognize depreciation for the year understates its income and assets.

   3.   Prepaid insurance expense will have a zero balance on the after closing trial balance.

   4.   Retained earnings on an adjusted trial balance is the beginning retained earnings for the period.

	A.	True, False, False, False
	B.	False, True, True, False
	C.	True, False, False, True
	D.	False, True, True, True
	E.	True, True, False, False

1 points   

QUESTION 8

Mark each of these items as an accrued asset, accrued liability, deferred expense or deferred revenue, then select the correct multiple-choice answer.

    ________ Interest of $500 on a note receivable was earned at year –end, although collection of the interest is not due until the following year.

    ________ At year-end, cash of $1,000 was collected for a job to be performed in the following year.

    ________ Office supplies were purchased during the year for $700, and $100 of them remained on hand at year-end.

    ________ At year-end, wages payable of $2,900 had not been recorded or paid.

	A.	Accrued Asset, Accrued Liability, Deferred Revenue, Deferred Expense
	B.	Accrued Asset, Deferred Revenue, Deferred Expense, Accrued Liability
	C.	Deferred Revenue, Deferred Expense, Accrued Asset, Accrued Liability
	D.	Deferred Expense, Accrued Asset, Accrued Liability, Deferred Revenue
	E.	Deferred Revenue, Accrued Liability, Accrued Asset, Deferred Expense

Answer 1

Q6.
Answer is E Salaries payable $ 16000;   Salaries payable $ 167000
Q7.
Answer is C. True, false, False and True
Q8.
Answer is B. Accrued Assets; Deferred Revenue; Deferred Expense and Accrued liability