Which of the following liability accounts is usually

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6. Which of the following liability accounts is usually not settled by payment of cash? A. Unearned revenues B. Accounts payable C. Taxes payable D. Accrued interest expense E. None of above. [ C ] 7. During 2010, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the rest will be paid in January 2011. Transaction analysis of operating expenses for 2010 should reflect only the following: [ C ] 8. Failure to make an adjusting entry to recognize accrued wages expense would cause an [ B ] 9. Which of the following errors would most likely lead to an overstatement of income? [ A ] 10. Which one of the following accounts would not be closed at the end of the accounting year? A. Prepaid expense. B. Utilities expense. C. Sales revenue. D. Wages expense. E. None of above
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4 | 7 Problem 2: Prepare adjusting entries (8 marks; 10 minutes) (2 marks each entry) Below are four transactions that were completed during 2009 by Timber Lodge. The annual accounting period starts on January 1, 2009 and ends on December 31, 2009. Please decide whether on December 31, 2009 the company needs to prepare an adjusting entry for each transaction. If so, what is the adjusting entry? State clearly in the adjusting entry whether the
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  • Spring '12
  • acbsadf
  • Generally Accepted Accounting Principles, Timber Lodge

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