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Unformatted text preview: Quiz on Chapter 3 Version A For the following Multiple Choice Questions, identify the letter of the choice (A,B,C, D or E) that best completes the statement or answers the question. 1. During the current year ended December 31, clients paid fees in advance for accounting services amounting to $25,000. If $3,500 of these fees remain unearned on December 31 of this year, which of the following will be included in the December 31 adjusting entry? A. A debit to Unearned Accounting Fees for $25,000. B. A debit to Accounting Fees Earned for $21,500. C. A credit to Accounting Fees Earned for $21,500. D. A credit to Unearned Accounting Fees for $21,500. E. A debit to Unearned Accounting Fees for $3,500. 2. Jeffrey Company's Office Supplies account shows a beginning balance of $1,600 and an ending balance of $1,400. If office supplies expense for the year is $3,100, calculate total amount of office supplies purchased during the period? A. $2,700. D. $3,500. B. $2,900. E. $3,700. C. $3,300 3. On April 1, 2004 a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. The adjusting journal entry required on September 30, 2004 will: A. debit Insurance Expense $1,350. D. credit Prepaid Insurance $225 B. debit Insurance Expense $375 E. debit Insurance Expense $37.50 C. Credit Prepaid Insurance $262.50 4. Pauline Company pays its employees a total salary of $7,000 every other Friday for 10 days of work (employees do not get paid for Saturdays and Sundays). The company’s pay days fall on May 27 (Friday) and June 10 (Friday), and they close their books on May 31. Which of the following pairs of journal entries is correct? A....
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- Fall '07
- ........., Generally Accepted Accounting Principles, a. b. c.