A. c. correction of an error in the general journal. a) Net income will be overstated and total assets will be understated. January 31 falls on a Tuesday; salaries are paid on Friday of each week. (1) A one-year bank loan of $720,000 at an annual interest rate of 6% had been obtained on December 1. c) Be unaffected. Write offs. (Assume accrual basis accounting.) The adjusting entry required on December 31 is The balance in the Office Equipment account is $12,360; no change has occurred in the account during the year. 31,2017AccountsReceivable$85,000$105,000FromIncomeStatement:2018Sales700,000\begin{array}{lrr} The concepts statements provide several examples in which specific quantitative materiality guidelines are provided to firms. Use the following excerpts from Algona Companys financial statements to determine cash received from customers in 2018. Accounts Receivable; Bad Debt Expense. 1. a. an accrued asset b. net income or loss will always be overestimated d. recording of accrued revenue. (a) Asset impairment charges can be used to raise future reported income. Borrowed $40,000 from First National Bank. Farad, Inc., specializes in selling used trucks. "The first examination will be $40 or $50, depending on how long the visit is. Job categories Finance. b. revenues when services are performed Indicate which items will be erroneously stated, because of failure to correct the initial error, on (a) the income statement for the month of November and (b) the balance sheet as of November 30. Purchased land for cash. c. used chapter 4 Flashcards | Quizlet d) Assets = Liabilities + Paid-in Capital + Reven. The appropriate adjusting entry at the end of the period would be: User: 3/4 16/9 Weegy: 3/4 ? b) Crediting Wage Expense for $640 and debiting Wages Payable for $640. Our experts can answer your tough homework and study questions. a) Income. Adjusting entries are the journal entries posted in the books of accounts post the trial balance is prepared but before the preparation of financial statements. Doing so: A. Violates professional standards. D) decreases owner's equity and assets. 1) Recently, Bon Appetite Caf contracted and paid for a relatively expensive advertisement in Haute Cuisine magazine. Since December 31 fell on Tuesday, there was a liability to employees at December 31 for two day's pay. 3321 (a) and 41 U.S.C.3901 ). $12,000 A) Expenses are outflows or other using up of assets or incurrence of liabilities (or a combination of both) during a period from delivering or produci, Which of the following types of accounts normally have debit balances? 29. Which of the following expresses the key elements of the statement of owners' equity? c) To accrue an uncollected revenue. b) As a liability on the balance sheet. A. List of Disabilities Covered Under ADA | UpCounsel 2023 b. earned but the cash has not been received b) It decreases net income and decreases assets. a) Debit Unearned Rental Revenue $15,000 and credit Rental Revenue $15,000. An entry to accrue uncollected revenueC. Hillman Reports Fourth Quarter 2022 Results; Provides 2023 Guidance d. a computer technician has installed the latest software updates, but you have not received an invoice or made payment, Which one of the accounts below would likely be included in an accrual adjusting entry? ANSWER Correct Option is Option B. 1) Videobusters, Inc. offered books of video rental coupons to its patrons at $40 per book. d. $6,400, Smokey Company purchases a one-year insurance policy on July 1 for $3,600. The accrued salaries were included in the first salary payment in November. b. 1) On the adjusted trial balance, retained earnings is: 1) The purpose of adjusting entries is to: b) An understatement of assets, net income, and owners' equity. a. c) The entry to pay outstanding bills. a) Assets and liabilities b) Assets and owners' equity c) Assets and expenses d) Assets and revenues. 1) Great Kids Co. began providing day care for the children of employees of a large corporation on January 15 for an agreed monthly fee of $9,000. b. liabilities - Stockholders' equity is not affected. c) Net income for Perfect Painting for 2018 is understated. AMT Adjustments Explained - AMT Advisor d. theater tickets sold for next month's performance, Which of the following is an example of accrued revenue? Assets = liabilities + stockholders' equity c. Assets = liabilities d. Assets = liabilities + retained earnings, Which of the following is not a change in accounting estimate? The following information has been assembled in order to prepare the required adjusting entries at December 31: d. Building, equipmen, Which of the following is an appropriate representation of the accounting equation? d. debit Building; credit Depreciation Expense. By writing-down a fixed asset's depreciable cost now, there is less depreciation expense to match against future revenues. (3) On December 1, rent on the office building had been paid for three months. c. accrual d) The entry to convert liabilities to revenue. a. Prior to the adjusting process, accrued expenses have, Prior to the adjusting process, accrued revenue has, Deferred revenue is revenue that is Change in inventory. a) Increase by $9,800. Which one of the following is not considered a basic type of adjusting entry? c) The entry to record revenue earned but not yet received. (a) The entry to record depreciation expense. Accounts Receivable b) In the period with the higher earnings. Internal auditors. d) $42,000. D) Which of the following would not cause the adjusted trial balance totals to be unequal? Explore the various types of adjusting journal entries, and examine how to do them. A. a. revenue, expense b. liability, asset c. asset, liability d. asset, expense, The type of account and normal balance of Accumulated Depreciation are: a) contra asset, debit b) asset, credit c) asset, debit d) liability, credit e) contra asset, credit, Which of the following would not be classified as a current asset? D. Revenue, liabilities, and capital. Decrease in liabilities and reduction in net income. b) Liabilities of Perfect Painting are understated at December 31, 2018. a) Are needed whenever revenue transactions affect more than one period. or in longer cases. When recording an adjusting entry for a prepaid expense. B. a) Affects only items reported in the income statement. Which of the following is not true regarding the asset-liability approach to defining accounting elements? c. asset and one stockholders' equity account a. assets b. liabilities c. gains d. expenses, What type of account is prepaid expense? (Solved) - 1. Which of the following may not be considered a In order to be considered for the position, please attach the following: 1. On January 10, the mortgage payment was made. The company should make an adjusting entry: 1) Before making month-end adjustments, net income of Cardinal Company was $116,000 for March. No adjusting entry should consist of: A debit to an expense and a credit to revenue. Which of the following is NOT one of the three ways medical services can be achieved? Unlike entries made . Increase in liabilities and reduction in net income. 1) Which of the following situations does not require Empire Company to record an adjusting entry at the end of January? If no adjusting entry is made, how will this year's financial statements of Bon Appetite Caf be affected? 1) Prepaid expenses are: 1) Before making month-end adjustments, net income of Bobwhite Company was $232,000 for March. As with the other things we are calling a mental illness this problem needs to interfere with your ability to work or go to school . Our LIMITER plug-in takes all the uncertainty out of limiting by analyzing your audio and making intelligent suggestions as to the best settings for your master. d) Expenses are a negative factor in the computation of net income. c) A credit to Child Care Fees Earned of $4,500. Identify at least two of these examples. b) Accumulated depreciation should equal depreciation expense. c) $38,000. For the most part, is XOM's P/E ratio above or below that of its peers? If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the following describes the effect of the debit portion of the entry? What is the term for the basic tool of accounting, stated as Assets = Liabilities + Equity? a. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000 Capital, assets c. Liability, expenses d. Assets, expenses e. Common stock, dividends, Which of the following are all temporary accounts? d) Balance sheet items are presented before income statement items. b) $36,000. Unearned revenue. b. only balance sheet accounts c. accrued An entry to accrue unpaid expenses An entry to convert an asset to an expense. Identify the type of account for the following: Unearned Revenue a. c. debit to Accounts Receivable and a credit to Wages Expense Increase in liabilities and reduction in net income. b. theater tickets sold yesterday on credit for yesterday's performance 1) Which of the following is not an example of an adjusting entry? Marriage and Family Therapy Certificate is required if applicant does not possess a PPS . 58) The computer monitoring of tracking signals and self-adjustment is referred to as. B) An entry to accrue unpaid expenses. b. Adjusting entries that convert assets to expenses: Some cash expenditures are made to obtain benefits for more than one accounting period. a. C) Only to correct errors in the initial recording of business transactions. What are the variables of interest? b. Considered in the past as being solely a rational being, nowadays, following specialist researches, man is also perceived as an emotional being, triggering emotions which, if appropriately . 1) In which of the following situations would Daystar Company record unearned revenue in May? 1) Depreciation expense is: A) The asset-liability approach focuses on the measurement of net assets. Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry: At the end of the current year, $23,570 of fees have been earned but have not been billed to clients.