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Exam 3: The Accounting Cycle: End of the Period

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Question 71

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The following events pertain to Bills Company: January 11,2016 - Bills provided accounting and tax services to the customer. Using cash-basis accounting,on which date should Bills Company record revenue for the accounting and tax services?

A) December 30,2015.
B) December 31,2015.
C) January 4,2016
D) January 11,2016.

E) A) and C)
F) B) and D)

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Question 72

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A company performs $4,200 of services during the month and receives full cash payment from customers at the time of service.Record the cash receipt using (a)accrual-basis accounting and (b)cash-basis accounting.

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Question 73

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The following table contains financial information for Fisher Inc.before closing entries: How many of the above accounts are permanent?

When the amount of interest receivable decreases during an accounting period:

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the correct term by placing the letter designating the term in the space provided. -____ An account that reflects an estimate.

The adjusted trial balance for China Tea Company at December 31,2015 is presented below: Prepare the closing entries for China Tea Company for the year ended December 31,2015.

When a company makes an end-of-period adjusting entry,which includes a debit to Supplies Expense,the usual credit entry is made to:

At December 31,2015,a company has received,but not paid,a utility bill for $250.The amount of utility expense for 2015 equals $250.

When a magazine sells subscriptions to customers,it is an example of:

The adjusting entry for an accrued revenue always includes a debit to a liability account and a credit to a revenue account.

Suppose Simeon Company begins the year with $1,000 in supplies,purchases an additional $5,500 of supplies during the year,and ends the year with $700 in supplies.The year-end adjusting entry includes Supplies Expense of $7,200.

When a company provides services on account,which of the following would be recorded using cash-basis accounting?

The adjusting entry for a prepaid expense always includes a debit to an expense account and a credit to a liability account.

A classified balance sheet separates assets into current and long-term,and separates liabilities into current and long-term.

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the correct term by placing the letter designating the term in the space provided. -____ A list of only permanent accounts and their balances prepared to prove that total debits equal total credits.

Consider the following events for Betterment Incorporated: Under accrual-basis accounting,what is the appropriate day to record the expenses related to the gasoline?

On December 31,2015,employees who earn $500 per day have worked eight days and will be paid on January 6,2016.The adjusting entry on December 31,2015,includes a debit to Salaries Expense for $4,000.

The December 31,2015,post-closing trial balance for Strong Corporation is presented below: Prepare a classified balance sheet for Strong Corporation at December 31,2015.

For each transaction below,calculate the amount of expense to be recognized in the current period using accrual-basis accounting: (a)Paid $3,500 on account for supplies purchased last period.All supplies were used last month. (b)Paid $5,000 cash for advertising in the current period. (c)Employees worked in the current period but will not be paid until the following period,$4,500.

A company borrows $20,000 with 8% interest on October 1,2015.This amount plus interest is due on September 30,2016.Record the adjusting entry on December 31,2015.