The expense account, Salaries Expense, has an unadjusted balanceof $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 justcompleted (Monday through Friday). Determine the correct endingbalance in Salaries Payable and Salaries Expense after the correctadjusting entry is made at year end:
A. Salaries Payable SalariesExpense
$4,000 $155,000
B. SalariesPayable SalariesExpense
$4,000 $147,000
C. SalariesPayable SalariesExpense
$16,000 $16,000
D. SalariesPayable SalariesExpense
$16,000 $135,000
E. SalariesPayable SalariesExpense
$16,000 $167,000
1 points
QUESTION 7
Answer the following statements as true or false, then selectthe correct multiple -choice answer:
1. If dividends are declared during the year thecompany would close the dividend account by debiting retainedearnings and crediting the dividend account.
2. A company that forgets to recognizedepreciation for the year understates its income and assets.
3. Prepaid insurance expense will havea zero balance on the after closing trial balance.
4. Retained earnings on an adjustedtrial balance is the beginning retained earnings for theperiod.
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 correctmultiple-choice answer.
________ Interest of $500 on a notereceivable was earned at year âend, although collection of theinterest is not due until the following year.
________ At year-end, cash of $1,000 wascollected for a job to be performed in the following year.
________ Office supplies were purchasedduring the year for $700, and $100 of them remained on hand atyear-end.
________ At year-end, wages payable of $2,900had not been recorded or paid.
A. Accrued Asset, Accrued Liability, Deferred Revenue, DeferredExpense
B. Accrued Asset, Deferred Revenue, Deferred Expense, AccruedLiability
C. Deferred Revenue, Deferred Expense, Accrued Asset, AccruedLiability
D. Deferred Expense, Accrued Asset, Accrued Liability, DeferredRevenue
E. Deferred Revenue, Accrued Liability, Accrued Asset, DeferredExpense
The expense account, Salaries Expense, has an unadjusted balanceof $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 justcompleted (Monday through Friday). Determine the correct endingbalance in Salaries Payable and Salaries Expense after the correctadjusting entry is made at year end:
| A. | Salaries Payable SalariesExpense $4,000 $155,000 | |
| B. | SalariesPayable SalariesExpense $4,000 $147,000 | |
| C. | SalariesPayable SalariesExpense $16,000 $16,000 | |
| D. | SalariesPayable SalariesExpense $16,000 $135,000 | |
| E. | SalariesPayable SalariesExpense $16,000 $167,000 |
1 points
QUESTION 7
Answer the following statements as true or false, then selectthe correct multiple -choice answer:
1. If dividends are declared during the year thecompany would close the dividend account by debiting retainedearnings and crediting the dividend account.
2. A company that forgets to recognizedepreciation for the year understates its income and assets.
3. Prepaid insurance expense will havea zero balance on the after closing trial balance.
4. Retained earnings on an adjustedtrial balance is the beginning retained earnings for theperiod.
| 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 correctmultiple-choice answer.
________ Interest of $500 on a notereceivable was earned at year âend, although collection of theinterest is not due until the following year.
________ At year-end, cash of $1,000 wascollected for a job to be performed in the following year.
________ Office supplies were purchasedduring the year for $700, and $100 of them remained on hand atyear-end.
________ At year-end, wages payable of $2,900had not been recorded or paid.
| A. | Accrued Asset, Accrued Liability, Deferred Revenue, DeferredExpense | |
| B. | Accrued Asset, Deferred Revenue, Deferred Expense, AccruedLiability | |
| C. | Deferred Revenue, Deferred Expense, Accrued Asset, AccruedLiability | |
| D. | Deferred Expense, Accrued Asset, Accrued Liability, DeferredRevenue | |
| E. | Deferred Revenue, Accrued Liability, Accrued Asset, DeferredExpense |
