31 Dec Record the adjusting

Question 1

On May 1, Lord of the Fries, Inc., issued a $10,000, 3-month, 12% note. It also issued another $10,000 6-month, 12% note on the same day. On May 31, the adjusting entry to record the interest owed will be ______.

Question 2

On May 1, its first month of business, Squid Roe, Inc., recorded the receipt of $900 in advance for services to be performed over the three months as Unearned Revenue. Record the May 31 adjusting entry to recognize the first month of revenue earned.

Question 3

Lox, Stock & Bagel, Inc. bought machinery at a cost of $583,000 on January 1. If its salvage value is $0 (i.e., it plans to not sell the machinery when it is done using it) and its useful life is 10 years, Depreciation Expense for the year ended December 31, Year 1 equals ______.

Question 4

Lox, Stock & Bagel, Inc. bought machinery at a cost of $416,000 on January 1, Year 1. It plans to dispose of the machinery after 10 years of use. Depreciation Expense for the year ended December 31, Year 2 equals ______.

Question 5

A pizza company receives a check from a customer as partial payment of his account balance. This transaction does not involve the sale of new pizzas. How should the entry be recorded?

Question 6

On December 31, Year 1, Accounts Payable had a balance of $10,000. During Year 2, there were $500,000 purchases on account and $490,000 payments of Accounts Payable. The December 31, Year 2, balance must equal $______. Do not include a $ in your answer.

Question 7

When a company makes a payment for amounts owed from prior purchases of inventory, it will record a debit to ______ and a credit to ______.

Question 8

The credit side of the Retained Earnings T-Account will include which of the following after recording the closing entries?

Revenues for the month.

Retained Earnings balance at the end of the month.

Question 9

Record the entry for the sale and the cost of the sale of merchandise to a customer on account for $800, which cost $500, by selecting which accounts are debited and which are credited.

Question 10

Curl Up & Dye, Inc. began May with $200 of supplies. It purchased $850 of supplies on account during May. It paid $450 of the amount it owed for its supplies in May. At May 31, it only had $110 of supplies left. Supplies Expense for the month ended May 31 equals ______.

Question 11

How many of the following accounts have a normal debit balance?

Accounts Receivable

Unearned Revenue

Wages Expense

Wages Payable

Depreciation Expense

Sales Revenue

Question 12

If a company credited Revenues, the debit may have been to ______. (Select all that apply.)

Question 13

If a company debited an expense, the credit may have been to ______.

Question 14

Record the purchase of $800 of merchandise on account by selecting which accounts would be debited and credited. (Select all that apply.)

Question 15

The entry to close expense accounts ______.

Question 16

On November 1, Year 1, Pitts’ Pits, Inc., paid $35,000 for a 5-month insurance policy beginning on that date. Prepaid Insurance at December 31, Year 1 equals ______.

Question 17

On November 1, Nim Com Soup, Inc., borrowed $40,000 by issuing a 3-month note at 9%. Interest Payable at December 31, equals ______.

Question 18

Record the adjusting entry on December 31 for wages owed to employees that will be paid in January, the next accounting period. (Select all that apply.)

Question 19

Given the Accounts Receivable T-account, match the correct description with each number. For the beginning (1. or 2.) and ending balances (5. or 6.), select “Blank” for the side that is opposite the account’s normal balance.

Question 20

Select all accounts that are closed at the end of an accounting period.