Accounting Question Help?

5. The Accumulated Depreciation's account balance is the sum of
depreciation expense recorded in past periods.
T/F

21. Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies:
a. that are in the ending balance
b. purchased
c. used
d. either used or remaining

22. Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?
a. Rent Expense
b. Fees Earned
c. Income Summary
d. Depreciation Expense

26. At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?
a. Total assets will be understated at the end of the current year.
b. The balance sheet and income statement will be misstated but the retained earnings statement will be correct for the current year.
c. Net income will be overstated for the current year.
d. Total liabilities and total assets will be understated.

30. Which of the following accounts ordinarily appears in the post-closing trial balance?
a. Dividends
b. Supplies Expense
c. Fees Earned
d. Unearned Rent

31.The type of account and normal balance of Unearned Rent is:
a. revenue, credit
b. expense, debit
c. liability, credit
d. liability, debit

35. Balance sheet accounts:
a. represent amounts accumulated during a specific period of time
b. are called real accounts
c. have zero balances after the closing entries have been posted
d. are equal to assets and liabilities

41. The net income reported on the income statement is $90,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,700 and accrued salaries of $1,300. Net income, as corrected, is:
a. $87,300
b. $90,000
c. $88,700
d. $86,000

26. An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a
a. debit to Allowance for Doubtful Accounts for $2,800.
b. debit to Bad Debts Expense for $2,800.
c. debit to Allowance for Doubtful Accounts for $4,000.
d. credit to Allowance for Doubtful for $4,000.

30. A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is
a. $10,000
b. $10,300
c. $450
d. $9,550

Sandy2008-09-22T20:52:55Z

Favorite Answer

5. The Accumulated Depreciation's account balance is the sum of
depreciation expense recorded in past periods. T

21. Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies:
c. used

22. Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year?
c. Income Summary

26. At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?
a. Total assets will be understated at the end of the current year.

30. Which of the following accounts ordinarily appears in the post-closing trial balance?
d. Unearned Rent

31.The type of account and normal balance of Unearned Rent is:
c. liability, credit

35. Balance sheet accounts:
b. are called real accounts

41. The net income reported on the income statement is $90,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,700 and accrued salaries of $1,300. Net income, as corrected, is:
a. $87,300

26. An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a
b. debit to Bad Debts Expense for $2,800.

30. A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is
b. $10,300

Rachel2008-09-22T10:00:19Z

True
To bring the supplies balance down to the correct level at the end of the year, you have to credit the asset account for anything you used.
Ending retained earnings = beginning retained earnings + income
These are really easy if you just read your textbook (or think about how the accounts work)...so do the rest yourself.

Anonymous2016-05-26T07:11:08Z

Mine's July 6-Cancer I'm Aries

David P2015-10-11T16:25:06Z

The answer to 26 is c, not a:

Net income will be overstated for the current year.