Can I get some help with these accounting questions please?
STUDENT’S NAME____________________________________DATE______________
ANSWER ALL QUESTIONS. READ QUESTIONS CAREFULLY BEFORE ATTEMPTING TO SOLVE THEM. USE ANY ELECTRONIC DEVICE TO HELP YOU IN YOUR CALCULATIONS. PLEASE USE ANY ACCDOUNTING WORKING PAPERS PROVIDED FOR YOUR CONVENIENCE.
SECTION ONE—PROBLEM-SOLVING QUESTIONS.
ADJUSTING JOURNAL ENTRIES:
On January 1, 2017, the Balance in the Supplies Account of the McKenzie Corporation was $10,000.During the year, supplies which were purchased amounted to $5, 200.When the Accountant of the McKenzie Corporation took a physical count of supplies in the stock room, the Supplies on Hand was $7, 400.
REQUIRED:
Determine the Supplies Used.
Make the necessary Adjusting Journal Entries as of December 31, 2017 (20Points)
Crawford Corporation purchased an Insurance Policy on July 1, 2017, the Policy’s Effective date for $7, 200 forTHREE years. The $7, 200 was recorded in the Corporation’s Prepaid Insurance Account. On December 31, 2017, the Accountant for the Crawford Corporation decided to adjust the Prepaid Insurance account for the Expired Portion of the Insurance.
REQUIRED:
Determine the Expired Portion of the Insurance Policy.
Make the necessary Adjusting Journal Entries. (10 Points).
On January 1, 2017,Wu Corporation purchased a vehicle for $40, 000, with a Salvage Value of $2,000 and an Estimated Useful Life of FOUR years.
REQUIRED:
Determine the Annual Depreciation of the vehicle.
Make the necessary Adjusting Journal Entries (20 points).
On August 1, 2017, Luna Realty Properties received advance Rental from one of its tenants for $6,000.The Realty Company gave the $6,000 check to its Accountant who deposited the check in the Realty Company’s bank account and later recorded the $6, 000 amount into the Realty Company’s business account called UNEARNED RENT REVENUE. On December 31, 2017, the Realty Company’s Accountant decided to adjust the Unearned Rent Revenue Account.
REQUIRED:
. Determine how much revenue has been earned by the Realty Company as of December 31, 2017.
Make the necessary Adjusting Journal Entries. (10 Points).
CLOSING JOURNAL ENTRIES
On December 31, 2017, the Credit Balance in the Service Revenue Account of the Martinez Upholstery Cleaning Service was $45, 000,. USE INCOME SUMMARY ACCOUNT WHERE NECESSARY IN THE CLOSING PROCESS.
REQUIRED:
Record the necessary Closing Journal Entries as of December 31, 2017(20 Points)
On December 31, 2017, the Debit Balances in the following accounts of the Martinez Upholstery Cleaning Service were:
Rent Expense $4,000
Advertising Expense $8,200.
Interest Expense $1,200.
Utilities Expense $2,500. USE INCOME SUMMARY ACCOUNT TO CLOSE THE EXPENSE ACCOUNTS.
REQUIRED:
Record the necessary Closing Journal Entries (10 Points).
On December 31, 2017, the Income Summary Account of the same Martinez Upholstery Cleaning Service had a Credit balance of $45,000 and a Debit Balance of $15, 900.
Required:
Record the necessary Closing Journal Entries for the Income Summary Accounts (10 Points).
On December 31, 2017, the Debit Balance in the Drawing/Withdrawals Account of the Martinez Upholstery Cleaning Service was $2,800.
REQUIRED:
Record the necessary Closing Journal Entries (10 Points).
SECTION TWO: MULTIPLE-CHOICE QUESTIONS. PUT A CIRCLE AROUND THE MOST CORRECT ANSWER LETTER, (two Points each).
Failure to adjust a Fixed Asset Account will result in an?
Understatement of the Total Assets.
Overstatement of Total Liabilities.
Overstatement of Capital Stock Account.
Overstatement of Total equity Account.
None of the above answers is correct.
If an Accountant adjusts a Prepaid Rent Account for $5, 200 for the expiration of the Prepaid Rent, how would this transaction be done in the Journal?
a. Debit Rent Revenue for $5,200 and Credit Unearned Rent Revenue for $5,200.
b. Debit Prepaid Rent for $5,200 and Credit Rent Revenue for $5,200.
c. Debit Unearned Rent Revenue for $5,200 and Credit Prepaid Rent for $5,200.
d. Debit Rent Expense for $5,200 and Credit Prepaid Rent for $5.200.
e. None of the above answers is correct.
3. Which of the following accounts will be closed at year-end?
a. Cash and Capital Accounts.
b. Accounts Payable and Supplies.
c. Service Revenue and Depreciation Expense.
d. Accounts Receivable and Prepaid Insurance.
e. None of the above answers is correct.
4. The final effect of each Adjusting Entry is that?
a. Statement of Retained Earnings and the Statement of Cash
Flows will be affected.
The Income Statement and The Balance Sheet will be affected.
The Statement of Owner’s Equity and The Income Statement will be affected.
All of the above answers are correct.
None of the above answers is correct.
If Expenses are decreases in Owner’s Equity, then Revenues are ?
Increases in Total Assets.
Decreases in Liabilities.
Decreases in Owner’s Equity
Increases in Liabilities.
None of the above answers is correct.
Which of the following has a Contra Account?
Cash.
Automobiles.
Accounts Payable.
Prepaid Insurance.
Unearned Rent Revenue.
In the Closing Process, to close the Income Summary Accounts, the Accountant would Debit Income Summary and Credit which of the following accounts?
Accounts Receivable.
Prepaid Insurance Account.
Service Revenue.
Prepaid Expenses Account.
None of the above answers is correct.
An example of an Accrued Liability is?
Rent Expense.
Allowance for Doubtful Accounts.
Interest Payable.
Cash.
None of the above answers is correct.
In the Post-Closing Trial Balance which of these accounts remain in the Post-Closing Trial Balance?
Revenue Accounts and Asset Accounts.
Liabilities and Capital Accounts.
Owner’s Equity Accounts and Dividends Accounts.
Asset Accounts, Liabilities Accounts and the Capital Account.
None of the above answers is correct.
An example of a Deferred Expense is a/an?
Liability that later becomes an expense.
Owner’s Equity Account that becomes an Expense,
Asset Account that later becomes an Expense.
Retained Earnings Account that later becomes an Expense.
None of the above answers is correct.
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