1. A company pays its workforce on Fridays for a five day workweek (Monday through that
Friday). The payroll for a week is $100,000 ($20,000 per day). If the accounting year-end 2011
falls on a Tuesday, the
adjusting journal entry on December 31, 2011
to record the $40,000
accrual of wages for 2011 will include a
A. debit to Salaries Payable of $100,000.
debit to Salaries Expense of $40,000.
C. credit to Salaries Payable of $60,000.
D. credit to Cash of $40,000.
debit to Salaries Payable of $40,000.
The Statement of Cash Flows for the current year contained the following:
The change in cash for the current year was an increase of $14,000.
2. What was the amount of Cash Flows from Investing Activities?
A. Cash Outflow of $1,000
Cash Outflow of $40,000
C. Cash Outflow of $10,000
D. Cash Inflow of $10,000
E. None of the above
3. Recording an adjusting journal entry to recognize depreciation would cause which of the
A. An increase in liabilities and expenses, and a decrease in stockholders' equity.
A decrease in assets and stockholders' equity, and an increase in expenses.
C. A decrease in assets, an increase in liabilities, and an increase in expenses.
D. An increase in assets, an increase in liabilities, and a decrease in expenses