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-   -   Adjusting entries (https://www.askmehelpdesk.com/showthread.php?t=59578)

  • Feb 2, 2007, 02:18 PM
    Noah91399
    Adjusting entries
    At the end of the fiscal year, the usual adjusting entry to prepaid insurance to record expired insurance was omitted. Which of the following is true?

    Total assets at the end of the yea will be understated
    Stockholders equity at the end of the year will be understated
    Net income for the year will be overstated
    Insurance expense will be overstated

    Adjusting entries affect at least one?

    Income statement account and one balance sheet
    Revenue and the drawing account
    Asset and one owner's equity account
    Revenue and one capital account

    Which of the following pairs of accounts could not appear in the same adjusting entry?

    Service revenue and unearned revenue
    Interest income and interest expense
    Rent expense and prepaid rent
    Salaries payable and salaries expense

    A company pays an employee 1,000 for a 5 day work wek, mon-fri. The adjusting entry on dec 31 which is wed is a debit, wages expense, $200 and credit wages payable, $200

    True or False?

    The balance in the prepaid insurance account beofre adjustment at the end of the year is $10,000. If the additional data for the adjusting entry is (1) the amount of insurance expired during the year is $8500, as compared to additional data stating (@) the amount of unexpires insurance applicable to a future period is $1500 for the adjusting entry.

    Which of the following would be true?

    The debit and credit amount for (1) would be the same as (2) but the accounts would be different
    The accounts for (1) would be the same as the accounts for (2) but the amounts would be different
    The accounts and amounts would be the same for both
    There is not enough information given to determine the correct accounts and amounts

    True or false adjusting entries affect only expense and asset accounts
  • Feb 2, 2007, 03:03 PM
    Curlyben
    Please refer to THIS ANNOUNCEMENT

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