ACCT 2001 Study Guide - Midterm Guide: Retained Earnings, Office Supplies, Ope

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15 Oct 2018

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ACCT 2001 Full Course Notes

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Exam 1 acct 2001 practice quiz chapters 3 and 4. Pal company made an advance payment of ,500 for seven months" rent on november 1, 2011 and debited an asset account. As a result: assets are overstated. net income is overstated. liabilities are overstated. owners" equity is understated: none of the above. There was no adjustment made for accrued wages on december 31, 2011. December but not payable until the first week in january, 2012, was . If this error is not discovered before statements for 2011 are prepared: assets as of 12/31/2011 will be overstated. liabilities as of 12/31/2011 will be overstated. 2011 net income will be overstated by . 2011 net income will be understated by . none of the above: office equipment was purchased on december 1, 2011, for ,000 and has an estimated useful life of five years and no residual value.

Related Questions

On 1 July the Winter Shoe Store paid $3,000 to Ace Realty for 6months rent beginning 1 July. Prepaid Rent was initially recordedas an asset for the full amount. If financial statements areprepared on 31 July, the adjusting entry to be made by the WinterShoe Store is (ignore GST):

Select one:

a. Debit Rent Expense $3,000, Credit Prepaid Rent $3,000.

b. Debit Rent Expense $500, Credit Prepaid Rent $500.

c. Debit Prepaid Rent $500, Credit Rent Expense $500.

d. Debit Prepaid Rent $3,000, Credit Rent Expense $3,000.

rubywildebeest424

On January 2, 20X1, Prepaid Rent had a balance of $15,000. Atthe end of the year, the amount of Prepaid Rent is $4,000.Required: The adjusting entry on December 31, 20X1 would be todebit Rent expense and credit Prepaid Rent for $ [a].

2. Needles pays employees $2,750 in wages per week. Wages arepaid each Friday for a 5-day work week. December 31, 20X1 ends on aTuesday. Required: The adjusting entry on December 31, 20X1 wouldbe to debit Wages expense and credit payable for $ [b].

3. At the beginning of the year, the Supplies account had $850.During the year $5,600 of supplies were purchased. At December 31,2009, $475 of supplies were on hand. Required: The adjusting entryon December 31, 20X1 would be to debit Supplies expense and creditSupplies for $ [c].

4. On October 1, 20X1, $21,000 was received from customers inadvance for services to be performed from October 1, 20X1 toSeptember 30, 20X2. Required: The adjusting entry on December 31,20X1 would be to debit Unearned Fees and credit Fees earned for $[d].

1. A company purchases a two - year insurance policy on June 1,20X1 for $36,000. The adjusting entry on December 31, 20X1 is debitInsurance Expense, $10,500, and credit Prepaid Insurance, for[a].

2. On September 1, 20X1, $6,000 was received from customers inadvance for services to be performed from September 20X1 to August31, 20X2.

Required: The adjusting entry on December 31,20X1 to record the amount of Fees earned would be: $ [b].

3. At the beginning of the year, 20X1, the Supplies account had$2,850. During the year $15,600 of supplies were purchased. AtDecember 31, 20X1, $650 of supplies were on hand.

Required: The adjusting entry on December 31,20X1 would be to debit Supplies expense and credit Supplies for $[c].

mauvekangaroo793

The following adjustments need to be made before the financialstatements can be prepared at the end of the year.
Task 1: Enter the necessary journal entries into the templateprovided and provide the journal entry for each.

December Interest on a bank loan is due on January 2nd of thefollowing year: accrue $1,000.
A contractor (outside services) has finished work on December 31st,but the invoice will not be received until January 7th of thefollowing year: accrue $750. A rent payment was made on December1st for three months from December 1st to February 28th of thefollowing year (6,000 in total). Record the transactionproperly.

The companyâs part-time employees worked a total of 50 hours inDecember, but will get paid only by January 5th. The hourly rate is$15.
The company must record the payment of its annual insurance premiumfor next year. The annual premium is $1,200, an adjustment isnecessary to prepaid insurance.

Task 2: Provide the adjusted trial balance (combine exercises2.1 and 2.2 to show the adjusted trial balance).

Interest Expense

Interest Payable

To record December interest expense to bepaid in January

Expense for Outside Services

Accounts Payable

To record liability towardscontractor

Rental Expenses

Prepaid Rent

Cash

To record the appropiate rental expensefor the month

Wage Expense