The trial balance for Greenway Corporation appears as follows Greenway

The trial balance for greenway corporation appears as

  • Utah Valley University
  • ACC 2010
  • Notes
  • LieutenantHackerApe7379
  • 102
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149.The trial balance for Greenway Corporation appears as follows:Greenway CorporationTrial BalanceDecember 31, 2011Cash$ 300Accounts Receivable500Prepaid Insurance60Supplies140Office Equipment4,000Accumulated Depreciation, Office Equipment$ 800Accounts Payable300Common Stock1,000Retained Earnings1,400Service Revenue3,000Salaries Expense1,000Rent Expense5000$6,500$6,500If as of December 31, 2011, rent of $120 for December had not been recorded or paid, the adjusting entry would include a: a.credit to Accumulated Rent for $120.b.credit to Cash for $120.c.debit to Rent Payable for $120d.debit to Rent Expense for $120 Ans: D, SO 4, BT: AP, Difficulty: Medium, TOT: 3 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Measurement, AICPA PC: Problem Solving FOR INSTRUCTOR USE ONLY 4-28
Accrual Accounting Concepts 150.The trial balance for Greenway Corporation appears as follows:Greenway CorporationTrial BalanceDecember 31, 2011Cash$ 300Accounts Receivable500Prepaid Insurance60Supplies140Office Equipment4,000Accumulated Depreciation, Office Equipment$ 800Accounts Payable300Common Stock1,000Retained Earnings1,400Service Revenue3,000Salaries Expense1,000Rent Expense5000$6,500$6,500If service for $125 had been performed but not billed, the adjusting entry to record this would include a: Ans: C, SO 4, BT: AP, Difficulty: Medium, TOT: 3 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Measurement, AICPA PC: Problem Solving 151. Depreciation is the process of: a. valuing an asset at its fair market value. b. increasing the value of an asset over its useful life in a rational and systematic manner. c. allocating the cost of an asset to expense over its useful life in a rational and systematic manner. d. writing down an asset to its real value each accounting period. Ans: C, SO 4, BT: K, Difficulty: Medium, TOT: 2 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Measurement, AICPA PC: Problem Solving 152. The difference between the balance of a plant asset account and the related accumulated depreciation account is termed: a. market value. b. contra asset. c. book value. d. liability. Ans: C, SO 4, BT: K, Difficulty: Easy, TOT: 1 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Reporting, AICPA PC: Problem Solving FOR INSTRUCTOR USE ONLY 4-29
Test Bank for Financial Accounting: Tools for Business Decision Making, Sixth Edition

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