Question Details

ACCTG 1A Week 4 Quiz 

QUIZ A	SECTION 					

		Indicate the best answer for each question in the space provided.

		1	ABC Jewelers purchased display shelves on March 1 for $18,000.  If this asset has an estimated useful life of five years, what is the book value of the display shelves on April 30?
			a	$300.	b	$17,400.	c	$17,700.	d	$600.

		2	The adjusting entry to recognize an unrecorded expense is necessary:
			a	When an expense is paid in advance.
			b	When an expense has been neither paid nor recorded as of the end of the accounting period.
			c	Whenever an expense remains unpaid at the end of an accounting period.
			d	Because the accountant is likely to forget to pay these unrecorded expenses.

		3	Before any month-end adjustments are made, the net income of Vasser Company is $500,000.  However, the following adjustments are necessary: office supplies used, $30,000; services performed for clients but not yet recorded or collected, $12,800; interest accrued on note payable to bank, $13,600.  After adjusting entries are made for the items listed above, Vasser company- net income would be:
			a	$556,400.
			b	$443,600.
			c	$529,200.
			d	$469,200.

		4	Of the following adjusting entries, which one results in an increase in liabilities and the recognition of an expense at the end of an accounting period?
			a	The entry to accrue salaries owed to employees at the end of the period.
			b	The entry to record revenue earned but not yet collected or recorded.
			c	The entry to record earned portion of rent previously received in advance from a tenant.
			d	The entry to write off a portion of unexpired insurance.

		5	The CPA firm auditing Pacific Company found that net income had been overstated.  Which of the following errors could be the cause?
			a	Failure to record depreciation expense for the period.
			b	No entry made to record purchase of land for cash on the last day of the year.
			c	Failure to record payment of an account payable on the last day of the year.
			d	Failure to make an adjusting entry to record revenue which had been earned but not yet billed to customers.
 
CHAPTER 4	NAME						 #	

10-MINUTE QUIZ B	SECTION 					

		Oriental Park adjusts its books each month and closes its books on December 31 each year.  The trial balance at January 31, 2008, before adjustments, follows:
		   Debit  	          Credit  
		Cash	 	$    6,600
		Supplies		5,400
		Unexpired Insurance		12,600
		Equipment		72,000
		Accumulated Depreciation: Equipment			$  18,000
		Unearned Admission Revenue			12,000
		Capital Stock			20,000
		Retained Earnings, January 1, 2008			38,200
		Admissions Revenue			27,600
		Salaries Expense		8,100
		Utilities Expense		5,700
		Rent Expense		     5,400	_________
			$115,800	$115,800
		1	Refer to the above data.  According to attendance records, $8,200 of the Unearned Admission Revenue has been earned in January.  Compute the amount of admissions revenue to be shown in the January income statement:
			a	$35,800.	b	$19,400.	c	$8,200.	d	$3,800.
		2	Refer to the above data.  At January 31, the amount of supplies on hand is $2,300.  What amount is shown on the January income statement for supplies  expense?
			a	$2,300.	b	$5,400.	c	$3,100.	d	$7,700.
		3	Refer to the above data.  The equipment has an original estimated useful life of six years.  Compute the book value of the equipment at January 31 after the proper January adjustment is recorded:
			a	$1,000.	b	$71,000.	c	$53,000.	d	$60,000.
		4	Refer to the above data.  Employees are owed $1,200 for services since the last payday in January to be paid the first week of February.  No adjust¬ment was made for this item.  As a result of this error:
			a	Assets at January 31 are overstated.
			b	January net income is overstated.
			c	Liabilities at January 31 are overstated.
			d	Owners’ equity at January 31 is understated.
		5	Refer to the above data.  On August 1, 2007, the park purchased a 12-month insurance policy.  The necessary adjusting entry at January 31 includes which of the following entries?  (Hint: The company has adjusted its books monthly.)
			a	A debit to Insurance Expense for $1,050.
			b	A credit to Unexpired Insurance for $11,550.
			c	A credit to Unexpired Insurance for $1,800.
			d	A debit to Unexpired Insurance for $10,800.
 

CHAPTER 4	NAME						 #	

10-MINUTE QUIZ C	SECTION 					

		Aquarius Travel adjusts its books each month and closes its books on December 31 each year.  The trial balance at January 31, 2007, before adjustments, follows:
		   Debit  	          Credit  
		Cash	 	$  3,300
		Supplies		2,700
		Unexpired Insurance		6,300
		Equipment		36,000
		Accumulated Depreciation: Equipment			$9,000
		Unearned Admission Revenue			6,000
		Capital Stock			7,500
		Retained Earnings, January 1, 2007			21,600
		Admissions Revenue			13,800
		Salaries Expense		4,050
		Utilities Expense		2,850
		Rent Expense		    2,700	________
			$57,900	$57,900

1	Refer to the above data.  According to attendance records, $4,800 of the Unearned Admission Revenue has been earned in January.  Compute the balance in the following accounts after the proper adjustment is made.
	Unearned Admission Revenue account balance $__________
	Admission Revenue account balance $__________

2	Refer to the above data.  At January 31, the amount of supplies still on hand was determined to be $675.  What amount should be reported in the January income statement for supplies expense?	$__________

3	Refer to the above data.  The equipment has an original useful life of eight years.  Compute the book value of the equipment at January 31 after the proper January adjustment is recorded.	$__________

4	Refer to the above data.  $900 is owed to employees for work since the last payday in January, to be paid the first week of February.  What is the effect on January net income if the accountant fails to make any January 31 adjustment for this item?  January net income will be (overstated/understated) by $__________.

5	Refer to the above data.  On June 1, 2007, the park purchased a 12-month insurance policy.  Give the adjusting entry to record insurance coverage expiring in January.  (Hint: The company adjusts its books monthly.)
 
CHAPTER 4	NAME						 #	
10-MINUTE QUIZ D	SECTION						 
The accountant for Mollie- Market, Inc. prepared the following trial balance at January 31, 2008, after one month of operations: 
		   Debit  	          Credit  
Cash	 	$  5,600
Accounts Receivable		4,400
Unexpired Insurance		2,000
Office Equipment		18,000
Unearned Consulting Fees			$  3,200
Capital Stock			15,500
Retained Earnings, January 1, 2005			0
Dividends		3,200
Consulting Fees Earned			26,200
Salaries Expense		7,600
Utilities Expense		1,600
Rent Expense		     2,000	
Supplies Expense		       500	______
			$44,900	$44,900
Additional information items:
a	Consulting services rendered to a client in January, not yet billed or recorded, $2,300.
b	Portion of insurance expiring in January, $200.
c	Income taxes expense for January of $2,400.
d	The office equipment has a life of 5 years.

Instructions.  Prepare adjusting entries for a through d.


Adjusting Entries		
Jan. 31