1. Chevrolet began 2016 with supplies of s8,500 ber the yea, Chevrolet purchased
ID: 2595266 • Letter: 1
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1. Chevrolet began 2016 with supplies of s8,500 ber the yea, Chevrolet purchased additional supplies for entry on Decen,32016$3,000 of supplies were used ADJUST THE ACCOUNTS-24 points $1,100. If an inventory of supplies taken on Dber during the year then Chevrolet's rs adjusting entry on December 31, 2016 would A) Debit B) Debit supplies for C) Credit to supplies for $3,000 D) Debit to supplies expense for $6,600 to supplies expense for $1,900 $4,100 on a $7,500 contract that will be on December 31, 2016 would includea 2. Chevrolet calculated that as of December 31, 2016 it had e completed and billed in August 2017. Chevrolet's adjusting entry A) No entry is required on December 31, 2016. B) Credit to unearned revenue for $4,000 C) Debit to accounts receivable for $3,500 D) Debit to accounts receivable for $7,500 E) Debit to unearned revenue for $4,000 Chevrolet purchased equipment for $48,000. If depreciation for the year is estimated to be $8,000 then 3. Chevrolet's adjusting entry would include a A) Debit to accumulated depreciation for $8,000 8) Credit to equipment for $8,000 C) Credit to depreciation expense for $8,000 D) Credit to accumulated depreciation for $8,000 4. Chevrolet's weekly (5-day) payroll of $4,000 is paid on Fridays. If December 31 falls on a Tuesday, what adjusting entry should Chevrolet make? A) Debit salaries expense $2,400 and credit salaries payable $2,400 B) Debit salaries expense $1,600 and credit salaries payable $1,600 C) Debit unpaid salaries $1,600 and credit salaries payable $1,600 D) Debit salaries payable $1,600 and credit salaries expense $1,600 5. In 2016, Chevrolet received an advanced payment of $8,000 for services to be performed. What adjusting ent would Chevrolet make if 40% of the advance fee was earned in 2016? A) Debit service revenue $4,800 and credit unearned revenue $4,800 B) Debit service revenue $3,200 and credit unearned revenue $3,200 c) Debit unearned revenue $3,200 and credit revenue $3,200 D) Debit unearned revenue $4,800 and credit revenue $4,800 E) Debit cash $3,200 and credit revenue $3,200 wed $40,000 in 2016. If interest and principal are both due when the note matures in 2017, borro 6. Chevrolet what adjusting entry should Chevrolet make on December 31, 2016? A) Debit interest expense and credit note payable B) Debit unpaid interest and credit note payable. C) No entry is required D) Debit interest expense and credit interest payable.Explanation / Answer
1. Answer = D) Debit to supplies for $ 6600
= $8500 + 1100 - 3000 = 6600
2. B) credit to unearned revenue for $4000
3. D) Credit to accumulated depreciation for $8000
Adjusting entry = Depreciation Account Debited by 8000 and Accumulated depreciation Credited by 8000
4. b) Debit salaries expense $1600 and credit salaries payable $1600
salary expense = $4000 * 2/5 = 1600
5. C) Debit unearned revenue $3200 and credit revenue $3200
40% of advance fee earned during the year 2016 = 8000 * 0.40 = 3200
When advance received we passed entry = Cash debited and unearned revenue account credited by 8000,.... now adjusting entry would be = Unearned revenue debited and revenue credited by 3200
6. A) debit interest expense and credit note payable
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