can anyone help with these practice test questions? QUESTION 1 At year-end, the

Question

can anyone help with these practice test questions?

QUESTION 1 At year-end, the balance in the prepaid insurance account, prior to any adjustments, is $6,000. The amount of the journal entry required to record insurance expense will be $4,000 if the amount of unexpired insurance applicable to future periods is $2,000 O True False QUESTION 2 The type of account and normal balance of Prepaid Insurance is O a. contra asset, credit contra asset, debit Oc, asset, debit Od. asset, credit QUESTION 3 What effect will this adjustment have on the accounting records? Unearned Revenue 6,375 Fees Earned 6,375 a increase net income b. increase revenues reported for the period c. decrease liabilities O d. all of these are true

Explanation / Answer

Adjusting Entries are journal entries made at the end of accounting period to record expenses and income pertaining to that period.

1) a.True

2)c.asset,debit

3)d.all of the above

4)a.True (unearned revenue is revenue received in advance)

5)d.8000 (7000+3000-2000)

6)a.True

7)b.False (Adjusted Trial balance is prepared after passing Adjusting entries)

8)c.Income Statement Account and Balance sheet account

9)b.False (Adjusting Entries affect both balance sheet and Income statement accounts)

10)

Date Description Debit Credit XX Accrued Fees $6,300 Fees Earned $6,300 XX Supplies Expense $3,790 Supplies $3,790 XX Wages Expense $2,700 Wages Payable $2,700 XX Depreciation Expense $1,650 Office Equipment $1,650 XX Rent Expenses $10,800 Prepaid Expenses $10,800

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