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Question:$925,000$959,000$945,400$938,6005 points Question 2

  1.  Anthony Delivery Service has a weekly payroll of $34,000. December 31 falls on Tuesday and Anthony will pay its employees the following Monday (January 6) for the previous full week. Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $925,000 at December 31. What is the December 31 balance of Salaries Expense after adjusting entries are recorded and posted?
  1.  Mercury Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of each month, the company makes an adjusting entry to account for the tickets used during the month (ticket revenue.) On March 1, the Unearned Revenue account had a credit balance of $5,000. During March, Mercury sold 500 tickets at $40 each, and 450 tickets were used during the month. What is the balance in Unearned Revenue at the end of March?
  2. Credit balance of $7,000
  3. Debit balance of $5,000
  4. Credit balance of $5,000
  5. Debit balance of $7,000

5 points 

Question 3

  1.  If a company is using accrual basis accounting, when should it record revenue?
  2. When cash is received, even though services may be performed at a later date
  3. When services are performed, even though cash may be received at a later date
  4. Before services are performed
  5. When cash is received, 30 days after the completion of the services

5 points 

Question 4

  1.  Jupiter Company signed a one-year $36,000 note payable at 8% interest on March 1, 2019. How much interest expense must be accrued on May 31, 2019? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.)
  2. $2,880
  3. $1,080
  4. $720
  5. $360

5 points 

Question 5

  1.  Metro Event Planning Services collects fees from its customers in advance. On January 1, 2019, the balance of its unearned revenue account was $5,000 (credit. During January and February, the company collected $2,000 and $700 as advance fees, respectively. During the two-month period, it performed services of $4,500 related to the deferred revenue. What is the balance in unearned revenue at the end of February?
  2. Debit balance of $5,000
  3. Credit balance of $5,000
  4. Debit balance of $3,200
  5. Credit balance of $3,200

5 points 

Question 6

  1.  A company receives payment from one of its customers on August 5 for services performed on July 21. Which of the following entries would be recorded if the company uses accrual basis accounting?
  2. Cash                                    1,000     Accounts Receivable                1,000
  3. Accounts Payable              1,000    Cash       1,000
  4. Cash        1,000    Service Revenue                  1,000
  5. Service Revenue                           1,000    Cash       1,000

5 points 

Question 7

  1.  ABC Tax Planning Service started business in January 2018. The company rented an office for $1,800 per month starting from January 1, 2018. On that day, ABC prepaid the rent through June 30. The company makes adjusting entries at the end of each month. What is the balance in the Prepaid Rent account as of April 30, 2018?
  2. $3,600
  3. $300
  4. $1,800
  5. $900

5 points 

Question 8

  1.  Which of the following statements is TRUE of accrual basis accounting?
  2. Accrual basis accounting is required by Generally Accepted Accounting Principles (GAAP).
  3. Accrual basis accounting records expenses only when cash has been paid for them.
  4. Accrual basis accounting records revenue only when cash is received.
  5. Accrual basis accounting always results in greater net income than cash basis accounting.

5 points 

Question 9

  1.  Justice Company purchased a machine for $15,000 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine.
  2. $12,000
  3. $3,000
  4. $16,500
  5. $15,000

5 points 

Question 10

  1.  Hudson Landscaping Service bought equipment for $10,800 on January 1, 2019. It has an estimated useful life of five years and zero residual value. Hudson uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June 30, 2019, the book value of this equipment shown on its balance sheet will be __________.
  2. $9,720
  3. $10,800
  4. $11,880
  5. $10,980

5 points 

Question 11

  1.  On January 1, 2017, the Accounts Receivable of Martha Company had a debit balance of $190,000. During January, the company provided services for $400,000 on account. The company collected $240,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January?
  2. $160,000
  3. $590,000
  4. $350,000
  5. $400,000

5 points 

Question 12

  1.  A business purchased equipment for $145,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.)
  2. Debit $145,000 to Equipment, and credit $145,000 to Cash.
  3. Debit $145,000 to Depreciation Expense-Equipment, and credit $145,000 to Accumulated Depreciation-Equipment.
  4. Debit $29,000 to Depreciation Expense-Equipment, and credit $29,000 to Accumulated Depreciation-Equipment.
  5. Debit $29,000 to Depreciation Expense, and credit $29,000 to Equipment.

5 points 

Question 13

  1.  Which of the following accounting terms assumes that a business's activities can be divided into small segments and that financial statements can be prepared for specific periods of time?
  2. Adjusting entry concept
  3. Economic entity concept
  4. Matching principle
  5. Time period concept

5 points 

Question 14

  1.  Advance cash payments of future expenses are called __________.
  2. accrued revenues
  3. deferred expenses
  4. deferred revenues
  5. accrued expenses

5 points 

Question 15

  1.  The allocation of a plant asset's cost to expense over its useful life is called __________.
  2. residual value
  3. book value
  4. accrued revenue
  5. depreciation

5 points 

Question 16

  1.  The adjusted trial balance shows __________.
  2. account balances after adjustments
  3. revenue and expense accounts only
  4. account balances before adjustments
  5. balance sheet accounts only

5 points 

Question 17

  1.  Which of the following is a contra account?
  2. Depreciation expense
  3. Accumulated depreciation
  4. Unearned revenue
  5. Book value

5 points 

Question 18

  1.  Princeton Financial Services Company purchased computers that are to be used in its consulting services. Based on the matching principle, what account, other than Computers, should appear on the balance sheet as of December 31 of that same year?
  2. Depreciation Expense - Equipment
  3. Service Revenue
  4. Accumulated Depreciation - Equipment
  5. Equipment Expense

5 points 

Question 19

  1.  An adjusting entry is completed __________.
  2. at the beginning of the accounting period
  3. at the end of the accounting period
  4. after all performance obligations are satisfied
  5. when accounts need to be balanced in the ledger

5 points 

Question 20

  1.  Accumulated depreciation is a(n) __________ account and carries a normal __________ balance.
  2. revenue; debit
  3. expense; debit
  4. contra asset; credit
  5. liability; credit

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