exam - True/False Questions (8 points) 1. Adjusting entries...

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True/False Questions (8 points) 1. Adjusting entries are recorded in the journal (i.e., journalized) and then they are posted to the ledger. Answer: True 2. Closing entries usually are journalized throughout the accounting period; however, they almost always are posted to the ledger at the end of the annual accounting period. Answer: False Response: False! Closing entries are not journalized nor posted until the end of the accounting period. That is, they are closed at year-end. Multiple Choice Questions (25 points) (single answer) 1. On January 1, 2006 Mammoth Corporation had retained earnings of $4,000,000. During 2006, they had net income of $750,000 and dividends of $100,000. What is the amount of Mammoth's retained earnings at the end of 2006? A) $4,000,000 B) $4,450,000 C) $4,650,000 D) $4,850,000 E) None of the above is correct Answer: C 2. Assume Idaho Company recorded the following adjusting entry at year-end: Insurance expense $2,000 Prepaid insurance $2,000 If the beginning balance in prepaid insurance was $500 and $2,500 was paid for an insurance premium during the year, the ending balance in the prepaid insurance account (after the above adjusting entry) would be A) $1,200 debit. B) $ 700 debit. C) $2,200 debit. D) $1,000 debit. E) None of the above is correct. Answer: D 3. At the end of 2009, the following data were taken from the accounts of Albert
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Company: Contributed Capital $ 555,000 Retained earnings, beginning balance January 1, 2009 300,000 Total revenue earned during 2009 900,000 Total expenses incurred during 2009 810,000 Total cash collected during 2009 890,000 The 2009 closing entries would include a
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This note was uploaded on 09/18/2008 for the course ACCT 2050 taught by Professor Sanjay during the Spring '08 term at Minnesota.

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exam - True/False Questions (8 points) 1. Adjusting entries...

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