ACC291T Week 4 Apply Exercise SCORE 100 PERCENT

Question 1
The Supplies account has a trial balance of $3,286. A year-end inventory shows $1,764 worth of supplies left at the end of the year. The correct adjusting entry is:
    debit Supplies Expense $1,522; credit Supplies $1,522
    debit Supplies Expense $1,764; credit Prepaid Supplies $1,764
    debit Supplies Expense $3,286; credit Supplies $3,286
    debit Supplies $1,522; credit Supplies Expense $1,522

Question 2
On August 1, 2019, a firm purchased a 1-year insurance policy for $5,700 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is
    $2,375.
    $3,325.
    $1,900.
    $5,700.

Question 3
If an account has a debit balance of $830 in the Trial Balance section of a worksheet and there is a credit of $460 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a
    $370 debit.
    $1,290 debit.
    $370 credit.
    $1,290 credit.

Question 4
On September 1, 2019, a firm accepted a 6-month, 11% note for $42,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2019, is

    $385.00
    $4,620.00
    $1,540.00
    No accrual is necessary

Question 5
On November 1, 2019, a firm accepted a 5-month, 10 percent note for $960 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2019, is
    $32.
    $80.
    $16.
    $96.

Question 6
Robin Banks, Inc. owns an armored truck which was purchased for $92,000. The Accumulated Depreci­ation on the truck is $62,000. The book value of the armored truck is
    $92,000
    $62,000
    $30,000
    $154,000

Question 7
Stan Still Stationery Store's employees are paid every Friday for a five day work week and are paid a total of $2,000 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

    $6,000
    $4,000
    $10,000
    $8,000

Question 8
On January 2, 2019, a firm purchased equipment for $13,500. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 4-year useful life, and a salvage value of $2,500, is

    $2,500.
    $1,875.
    $2,750.
    $3,375.

Question 9
Rose Bush Nursery purchased a delivery truck for $44,900. The truck is expected to have a useful life of 5 years and a residual value of $2,900. If the truck was purchased on June 1, 2019, what is the amount of depreciation expense for the truck for the year ended December 31, 2019? The company uses the straight-line method of depreciation.

    $2,900
    $4,200
    $4,900
    $8,400

Question 10
On April 1, 2019, a firm accepted a 6-month, 10 percent note for $2,520 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is

    $210.
    $84.
    $63.
    $252.

   

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