Question & Answer: Which of the following accounts is least likely to appear in an adjusting entry? a. Interest receivable. b. Salaries…..

Name Please enter your answers in the Scantron. Each multiple choice question is worth 3 points 1. Which of the following accounts is least likely to appear in an adjusting entry? a. Interest receivable. b. Salaries payable Property tax expense Cash 2. On October 1, 2016, the $24,000 premium on a one-yea r insurance contract for the building w paid and properly recorded. On December 31, 2016, at the end of the accounting period, wha adiusting entry is needed? a. Prepaid insurance b. Prepaid insurance c.) Insurance expense d. Insurance expense Insurance expense Insurance expense Prepaid insurance 18,000 6,000 6,000 6,000 18,000 6,000 1 18,000 Prepaid insurance 18,000 3. At the beginning of the current year, ABC Company had $1,200 of supplies on hand. During t year, the company purchased supplies amounting to $7,000 (paid for in cash and debited to Supplies). At the end of the year, a count of supplies reflected $1,800 (i.e, ending balance). T adjusting entry to record this at the end of the year includes a. Credit to Supplies of $6,400 b. Debit to Supplies of $1,800 c. Credit to Supplies of $7,600. d. None of the above. 4. If a company reported the following items on its income statement (cost of goods sold, $6, income tax expense, $2,000; interest expense, $100; operating expenses $3,900; sales reve $15,000), what amount would be reported for subtotal income from operations? a. $5,100 b. $3,000 c. $3,100 d. $5,000

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Which of the following accounts is least likely to appear in an adjusting entry? a. Interest receivable. b. Salaries payable c. Property tax expense d. Cash On October 1, 2016, the $24, 000 premium on a one-year insurance contract for the building w paid and properly recorded. On December 31, 2016, at the end of the accounting period, what adjusting entry is needed? a. Prepaid insurance 18, 000 insurance expense 18, 000 b. Prepaid insurance 6, 000 Insurance expense 6, 000 c.) Insurance expense 6, 000 Prepaid insurance 6, 000 d. Insurance expense 18, 000 Prepaid insurance 18, 000 At the beginning of the current year, ABC Company had $1, 200 of supplies on hand. During the year, the company purchased supplies amounting to $7, 000 (paid for in cash and debited to Supplies). At the end of the year, a count of supplies reflected $1, 800 (i.e., ending balance). T adjusting entry to record this at the end of the year includes a. Credit to Supplies of $6, 400 b. Debit to Supplies of $1, 800 c. Credit to Supplies of $7, 600. d. None of the above. If a company reported the following items on its income statement (cost of goods sold, $6, income tax expense, $2, 000: interest expense, $100: operating expenses $3, 900: sales $15, 000), what amount would be reported for subtotal “income from operations”? a. $5, 100 b. $3, 000 c. $3, 100 d. $5, 000

Expert Answer

1) Cash is the answer. As it is recorded as and when the transaction was takes place and regular reconciliation will be done. So it is least likely to appear as adjusting entry.

2) Insurance premium per month is = 24000/12= $ 2,000

No of months expired for the year 2016 is = 3 months.

Prepaid no of months is = 9 months and amount is = 2000*9= $ 18,000/-

So entry will be

Preapid insurance Dr. 18,000

To Insurance. 18,000

Answer is Option a)

3) Computation of supplies consumed :-

Beggining value. $ 1,200

Add: Purchase $ 7,000

Less: Closing value $ 1,800

Consumption is = $ 6,400

So answer is option a) make the Credit in the supplies account by $ 6,400

4) Income from operations eis= Sales revenue – Cost of good sold – Operating expenses

amou of cost of goods sold is nkt appearing to complete the aanswer. But it can be solved using abov equation.

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