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 . Increase in assets and increase in net income. If United Shipping makes monthly adjusting entries, which of the following is included as part of the March 31 adjusting entry? c. Prepaid expenses, land, and accounts receivable. After recording these adjustments, net income for March is: (1) A one-year bank loan of $720,000 at an annual interest rate of 6% had been obtained on December 1. This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. b. purchased c. Increase in an asset and increase in, The recognition of an expense may be accompanied by which of the following? d) Midwood Consultants received payment in February for consulting services rendered in March. c. The adjustment for prepaid insurance was omitted. The following information has been assembled in order to prepare the required adjusting entries at December 31: d) Net income for Perfect Painting for 2018 is overstated. Change in accounts payable. d) $222,900. Data gathered from parents, siblings and teachers indicated that siblings in ABA families experienced neither significant drawbacks nor benefits in terms of . C) decreases assets and increases liabilities. (If you click "Add or remove columns," you will find that you can obtain comparisons of a number of key statistics for either the most recent year or quarter.) The entry to record the collection of accounts receivable c. The entry to record the purchase of equipment d. The entry to record bad debts expense for the period. b) Expenses have normal debit balances. a. 1) During the last month of its fiscal year, Echo Lake Resort provided catering services for local business. c) An overstatement of liabilities offset by an understatement of owners' equity. c. $5,000 (a) Revenue collected in advance (b) Accrued interest payable (c) The current portion of long-term debt (d) All of the above are correct. c) To prepare the revenue and expense accounts for recording transactions of the following period. Which of the following is NOT considered an epidermal appendage? After adjusting entries are made for the items listed above, Russell Company's net income would be: D) Expenses. A) b) Only if the same accountant prepares the income statement each period. Indicate also the type of financial statement. b) Deferred revenue. (b) An expensive private jet that can be purchased from a local vendor. If no adjustment is made for this item at January 31, how will Princess's financial statements be affected? a. failure to adjust Unearned Revenue to recognize revenue earned b. failure to record depreciation for the year c. failure to accrue interest payable d, Which of the following statements best describes tax results to a shareholder in a section 351 transaction when liabilities on property transferred to the corporation are assumed by the corporation? The adjusting entry required by Great Kids Co. on January 30 includes: = 15 ? (a) A power. b) Daystar Company completes a job for a customer in May; payment will be received in June. (b) Asset impa, Which of the following is considered in computing depreciation expense using the straight-line method? a. d. required for the next accounting period, The cost of office supplies to be used in future periods is ordinarily shown on the balance sheet as a(n) A debit to an asset account and a credit to an expense account. a) Are needed whenever revenue transactions affect more than one period. d. Building, equipmen, Which of the following is an appropriate representation of the accounting equation? Which of the following is not considered a basic type of adjusting entry?A. E) running sum of forecast errors (RFSE). d) The entry to convert liabilities to revenue. a. Adjusting entries are necessary for the following items: 1) Gamma Company adjusts its accounts at the end of each month. The power of the exchange rate policy under the structural Adjustment programme are to discourage imports and promote agric a) The entry to record depreciation. B) d) Balance sheet items are presented before income statement items. Debit Depreciation Expense $578 and credit Accumulated Depreciation $578. B) decreases net income and increases liabilities. b. Underrecording debt. a. However, it does not protect against aspiration. a. Nearly 13 years after the crash, Barker attempted to address his fear of flying . a. expense, contra asset .c) A credit to Child Care Fees Earned of $4,500. Indicate also the type of financial statement. $3,500. 45, 2009). b. revenues when services are performed Go to the FASB website and access the FASB Concepts Statements and respond to the following items. Become a Study.com member to unlock this answer! b. debit to Wages Payable and a credit to Wages Expense d. market value. b) To apportion unearned revenue. When you have accessed the documents, you can use the search tool in your Internet browser. d) Ordered. The entry to record this event is an example of an adjusting entry: 1) An asset purchased on January 1, 2015 for $60,000 that has an estimated life of 10 years will have a book value on December 31, 2018 of: Liabilities assumed by a corporation on section 351 t. Which of the following groups of accounts have a normal credit balance? The three most common types of adjusting journal entries are accruals . January 31 falls on a Tuesday; salaries are paid on Friday of each week. Insurance Expense a. b) Accumulated depreciation should equal depreciation expense. b. net income or loss will always be overestimated Identify where the following item would be reported in the financial statements. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Legal Expense a. A) The variable being predicted is the Y variable. Beginning capital, capital contribution and withdrawals, and net income. 1 answer below . Office Furniture Owner withdrawals Unearned Revenu. 6, expenses can be defined by which of the following? b) Generally fall into one of two categories. View the full answer d. rarely needed in large companies, Adjusting entries affect at least one - Total assets decrease. a) Asset b) Liability c) Expense d) Owners' equity, Which of the following is the accounting equation? c. Decrease a liability; increase revenue. An entry to accrue uncollected revenueC. A. asset B. contra asset C. liability D. stockholder's equity E. contra stockholder's equity F. revenue, or expense, Which of the following is also referred to as debt? b) Net income will be understated and total assets will be understated. c. theater tickets that were not sold for the current performance c) Assign revenues to the period in which they are received. b. a. depreciation d) $34,240. Interest Revenue b) $36,000. A: Accrued revenues are those which have been accrued but not yet paid. Prepaid expenses. C) Adjusting entries can be divided into the following four types. When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were omitted. a. still on hand ($60,000 / 10 = $6,000 * 4 = $24,000; $60,000 - $24,000 = $36,000). a) Debit Unearned Rental Revenue $15,000 and credit Rental Revenue $15,000. Which of the following entries causes an immediate decrease in assets and in profit? b. contra asset b. theater tickets sold yesterday on credit for yesterday's performance Which of the following is a typical example of a current liability? Which of the following is NOT one of the three ways medical services can be achieved? b. deferred Learn the definition of adjusting entries in accounting, and find examples. c. an accrued expense the amount of the trial balance. Which of the following groups are not considered a specialist by AICPA Professional Standards: A. Appraisers. b) Midwood Consultants made payment in January for office rent for the first three months of the year. d. None of these choices would not cause the adjusted trial balance totals to be unequal. What category does capital belong to? a . A) Deferred credits B) Constructive obligations C) Equitable obligations D) Contingent liabilities, Which of the following doesn't correctly describe a journal entry which debits depreciation expense and credits accumulated depreciation? a. a. net income or loss will always be underestimated Toe researchers examined the link between engagement ring price (dollars) and level of appreciation of the recipient (measured on a 7-point scale where 1 = "not at all" and 7 = "to a great extent"). a) Assets of Perfect Painting are overstated at December 31, 2018. Gamma Company adjusts its accounts at the end of each month. The cost of insurance is considered an expense: Evenly over the term of the policy Adjusting entries are prepared: We level all printers as if everything is properly assembled, tightened, and adjusted. a) In the period in which they are earned. a. the required rate of return. Is the gift you purchased for that special someone really appreciated? Asset b. b) Depreciation Asset b. d) The entry to record accrued wages payable. c) As a liability on the balance sheet. Sketch the graph of D(v)D(v)D(v). Your brickwall limiter settings will make or break your master. copyright 2003-2023 Homework.Study.com. (a) Contracts resulting from sealed bidding shall be firm-fixed-price contracts or fixed-price contracts with economic price adjustment. a) It increases expenses and does not affect assets. (c) The entry to record the earned portion of rent received in. On a given Friday, the probability that Flight 277 to Chicago is on time is 23.7%. a) In April, Daystar Company received payment from a customer for services that are performed in May. b) $231,900. a) The entry to record the earned portion of rent received in advance. a. only income statement accounts FromBalanceSheetsAccountsReceivableFromIncomeStatement:SalesDec. Revenues, liabilities, capital b. b. deferral c. debit Accumulated Depreciation; credit Depreciation Expense. snow removal services that have been provided but have not been billed or paid. c. correction of an error in the general journal. A. expenses and liabilities B. expenses and revenues C. revenues and liabilities D. expenses and assets, Which one of the following groups of accounts contains only assets? Description This is an X-Axis gantry bed leveler, the first of its kind. Give Mr. Brown a tactful collection call. Liability c. Equity d. Revenue e. Expense, Identify the type of account for the following: Owner Capital a. Limitation on Overall Itemized Deductions Years before 2018 and after 2025: For years before 2018 and after 2025, the overall limitation on itemized deductions is an adjustment for AMT. = 2 5/20 1. (a) The entry to record depreciation: $3,000. c. debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100 29. A large corporation is one having $1 million or more taxable income during any of its 3 preceding tax years. c) Depreciation Demand a reason for nonpayment. c) Only if each accounting period covered is a full year. d) An overstatement of net income and an understatement of assets. Question 6 options: 1) In which of the following situations would the largest amount be recorded as an expense of the current year? b) Treats as material only those items that are greater than 2% or 3% of net income. b. b. asset, debit 4. Use the following excerpts from Algona Companys financial statements to determine cash received from customers in 2018. 1) Which of the following statements is not true regarding prepaid expenses? 400 A) Supplies expense 400 Supplies 400 B) Depreciation expense 400 Accumulated depreciation 400 C) Wage expense 400 Cash 400 D) Insurance expense 400 Prepaid insurance. d) As an expense on the income statement. Decrease in assets and reduction in net income. These adjustments are discussed below. b. depreciation The relationship between the nozzle height and Gantry height is considered not to change, thus leveling only one corner and the . Adjusting entries are needed: A. Adjusting journal entries are a feature of accrual accounting as a result of revenue recognition and matching principles. b) Realization principle A) An entry to convert a liability to a revenue. (4) Depreciation of office equipment is based on an estimated useful life of five years. Additional materials will not be considered or returned. Which of the following expresses the key elements of the statement of owners' equity? Doing so: A. Violates professional standards. C) An entry to convert. The adjustment for accrued fees of $16,340 was journalized as a debit to Accounts Payable for $16,430 and a credit to Fees Earned of $16,340. 6 2/3 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? Advanced Limiting Techniques. Createyouraccount. Which of the following is considered to be unearned revenue? a. debit Salaries Payable; credit Cash b) The entry to pay salaries. Adjusting entries that convert assets to expenses: Some cash expenditures are made to obtain benefits for more than one accounting period. D) The pet died and the family has complained about the effect of the treatment. Get access to this video and our entire Q&A library, Adjusting Entries: Definition, Types & Examples. Compute the dealerships sales price variance and sales volume variance for the month and classify each as favorable or unfavorable. Question 14 options: School Columbia College; Course Title ACCT 280; Type. a) Materiality c) Debit Unearned Rental Revenue $5,000 and credit Rental Revenue $5,000.