A $300,000 building was purchased on December 1. It is estimated that it will have a life of 20 years and zero salvage value. Calculate depreciation expense for the month of December using straight-line depreciation.
You are watching: A plant asset can be defined by which of the following statements
$800 of supplies were purchased at the beginning of the month and the Supplies account was increased. As of the end of the period, $200 of supplies still remain. Which of the following is the correct adjusting entry?
A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the payment. The required adjusting journal entry on December 31 includes a: (Check all that apply.)
$21,000 of equipment is purchased on December 1. It is estimated that it will have a life of 5 years and zero salvage value. Calculate depreciation expense as of December 31 of the first year using the straight-line method.
A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below.
Its original cost (minus any salvage value) is expensed over its useful life.It has a life within the business greater than one year.It is reported on the balance sheet.It is a tangible long-term asset.
$500 of supplies were purchased at the beginning of the period. By the end of the period, only $100 remains. The adjustment to show the $400 of supplies used would have the following effect(s). (Check all that apply.)
The account allows both the original cost of plant assets and the total depreciation taken to be shown simultaneously.
$1,000 of cash was received in advance of performing services. By the end of the period, $300 had not yet been earned. (The Unearned revenue account was increased at the time of the initial cash receipt.) Demonstrate the required adjusting journal entry by selecting from the choices below. (Check all that apply.)
They are reported on an income statement.Examples of accrued expenses are wages expense and interest expense.They refer to costs that are incurred in a period, but are both unpaid and unrecorded.Adjustments involve increasing both an expense and a liability account.
It is reported on the balance sheet.It reports amounts owed to employees.It is increased with a credit.It is a liability account.
$1,000 of cash was received in advance of performing services. By the end of the period, $300 had not yet been earned. (The Unearned revenue account was increased at the time of the initial cash receipt.) Demonstrate the required adjusting journal entry by selecting from the choices below. (Check all that apply.)
By the end of the accounting period, employees have earned salaries of $500, but they will not be paid until the following pay period. Which of the following is the proper adjusting entry?
An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 had been earned. Demonstrate what the correct adjusting entry should include by choosing the correct statement below.
For the current year, Bubbles Office Supply had earned $600 of interest on investments. As of December 31, none of this interest had been received or recorded. Demonstrate the required half of the adjusting entry by choosing the correct statement below.
a 24-month insurance policy was prepaidAn advance payment was received from a customer earlier in the month, but only partially earned by the end of the month.Supplies were purchased at the beginning of the year, but not all were used.Six months of rent were paid in advance.Equipment was purchased in the middle of the year.
The adjusted trial balance generally has more accounts listed than the unadjusted trial balance.The adjusted trial balance is used to prepare financial statements.The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted.
An account used during the closing processA temporary accountAn account that contains a credit for the sum of all revenuesAn account whose balance equals net income or net loss
Explain your understanding of the closing process by choosing the correct statements below. (Check all that apply.)
the closing process helps to summarize a period”s revenues and expenses.the closing process resets the balances in temporary accounts to zero.
An account that contains a credit for the sum of all revenuesAn account used during the closing processAn account whose balance equals net income or net lossA temporary account
At year-end, ABC Company is completing its closing process. Use the following account balances to demonstrate the closing of the Dividends account. (Check all that apply.)
An account used during the closing processA temporary accountAn account whose balance equals net income or net lossAn account that contains a credit for the sum of all revenues
Describe the general ledger after adjusting and closing entries have been posted. (Check all that apply.)
All expense accounts will show a $0 balance after closing.The abbreviations “adj.” and “clos.” have been entered in the explanation columns of the ledger.The Dividends account will have a $0 balance after closing.The Income Summary account will show three closing entries.
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Which of the following lists steps of the accounting cycle in the correct order (note that not all steps are listed)?
Current items are those expected to come due within one year or the company”s operating cycle, whichever is longer.
A company had the following selected balances:AccountDebitCreditService Revenue$4,000Rental Revenue$2,000Wages Expense$500Utilities Expense$100Dividends$80Demonstrate the last closing journal entry to close the Dividends account by selecting the correct answer below.
2 Journalize and post the adjusting entries.2.Journalize and post the adjusting entries.3 Prepare the adjusted trial balance.3.Prepare the adjusted trial balance.
Answer ModeOrdering Question Your Answer incorrectSome of the steps in the accounting cycle are listed below. Place them in the correct order of use.Position 1 of 6 Journalize and post the adjusting entries. incorrect toggle button unavailableJournalize and post the adjusting entries.Position 2 of 6 Journalize and post closing entries. incorrect toggle button unavailableJournalize and post closing entries.Position 3 of 6 Journalize transactions into the journal. incorrect toggle button unavailableJournalize transactions into the journal.Position 4 of 6 Prepare post-closing trial balance. incorrect toggle button unavailablePrepare post-closing trial balance.Position 5 of 6 Prepare the financial statements. incorrect toggle button unavailablePrepare the financial statements.Position 6 of 6 Prepare the adjusted trial balance. incorrect toggle button unavailablePrepare the adjusted trial balance.Correct Answer1 Journalize transactions into the journal.1.Journalize transactions into the journal.2 Journalize and post the adjusting entries.2.Journalize and post the adjusting entries.3 Prepare the adjusted trial balance.3.Prepare the adjusted trial balance.4 Prepare the financial statements.4.Prepare the financial statements.5 Journalize and post closing entries.5.Journalize and post closing entries.6 Prepare post-closing trial balance.6.Prepare post-closing trial balance.
n unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity.
Identify which of the accounts below would be classified as a plant asset account. (Check all that apply.)
Notes receivable and stock and bond investments are assets that are expected to be held for more than one year.Long-term investments are sometimes referred to as noncurrent investments
Plant assets are equipment and other assets that have a life greater than one year.Plant assets are difficult to convert to cash quickly.Plant assets are property, plant and equipment that are tangible.
Current liabilities are obligations due to be paid within one year.Current liabilities are reported in the order of those to be settled first.Current liabilities are usually settled by paying out current assets such as cash.
Identify the accounts below that would be classified as current liabilities on a classified balance sheet. (Check all that apply.)
Identify the accounts below that would be classified as long-term liabilities on a classified balance sheet. (Check all that apply.)
Notes receivable and stock and bond investments are assets that are expected to be held for more than one year.Long-term investments are sometimes referred to as noncurrent investments.
Retained Earnings is a permanent account, but Dividends is a temporary account.Temporary accounts are reported on the income statement.Permanent accounts will appear on a post-closing trial balance.Temporary accounts have a balance for one period only.Permanent accounts are reported on the balance sheet.
Current liabilities are usually settled by paying out current assets such as cash.Current liabilities are obligations due to be paid within one year.Current liabilities are reported in the order of those to be settled first.
Current liabilities are usually settled by paying out current assets such as cash.Current liabilities are obligations due to be paid within one year.Current liabilities are reported in the order of those to be settled first.
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Notes receivable due in 2 yearsLand held for future expansionInvestments in bonds
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