ADJUST THE ACCOUNTS-24 pints 1. Buick began 2016 with supplies of $5,500. During

Question

ADJUST THE ACCOUNTS-24 pints 1. Buick began 2016 with supplies of $5,500. During the year,buick then Buick's adjusting entry on December 31 A) Debit to supplies expense for $2,300 B) Debit supplies for $3,700 C) Credit supplies for $3,000 D) Debit supplies expense for $3,200 puarchased adstional woples for 500. , 2016 would include . 2. Buick calculated that as of December 31, 201s it had earned $2.s00 on a $4,500 contract tut will e completes . Buicks in August 2017 adjusting entry on December 31, 2016 would inclube a A) Debit to accounts receivable for $4,500 B) Debit to accounts receivable for $2,500 C) Debit to unearned revenue for $2,000 D) Credit to unearned revenue for $2,000 E) No entry is required on December 31,2016 3. Buick purchased equipment for $25,000. if depreciation for the year's estimates to be 5,00. Den Buek adjusting entry would include a A) B) C) Debit to accumulated depreciation for $5,000 Credit to equipment for $5,000 Credit to deprecilation expense for $10,000 5,000 D) Credit to accumulated depreciation for s Buick weekly (5-day) payrol of S3,000 is paid on Friday, if December 31 tals on. Tuesday what entry should Buick make? stre 4. B) Debit salaries expense $1,200 and credit salaries payable $1,200 C) Debit unpaid salaries $1,200 and credit salaries payable $1,200 D) Debit salaries payable $1,200 and credit salaries expense $1,200 A) Debit salaries expense $1,800 and credit salaries payable $1,800 In 2016, Buick received an advanced payment of $40,00. What adjusting entry would Buick make,40%ofthe advance fee was earned in 2016? A) Debit service revenue $16,000 and credit unearned revenue $16,000 B) Debit unearned revenue $16,000 and credit service revenue $16,00 C) Debit service revenue $24,000 and credit unearned revenue $24,000 D) Debit cash $16,000 and credit unearned revenue $16,000 E) Debit unearned revenue $24,000 and credit service revenue $24,000 5. A) Debit unpaid interest and credit note payable. B) Debit interest expense and credit interest payable. C) Debit Interest expense and credit note payable $$50 D) No entry is required 6. Buick borrowed $30,000 in 2016. If interest and principal are both due when the note matures in 2017, what adjusting entry should Buick make on December 31, 2017?

Explanation / Answer

1C Credit supplies for $3,000 Explanation: Supplies Expense $3,000 Supplies $3,000 2B Debit to accounts receivable for $2,500 Explanation: Accounts receivable $2,500 Service revenue $2,500 3D Credit to accumulated depreciation doe $5,000 Explanation: Depreciation expense $5,000 Accumulated depreciation $5,000 4B Debit salaries expense $1,200 and credit salaries payable $1,200 Explanation: Salaries expense $1,200 Salaries payable (3000*2/5) $1,200 5B Debit unearned revenue $16,000 and credit service revenue $16,000 Explanation: Unearned revenue(40000 x 40%) $16,000 Service revenue $16,000 6B Debit interest expense and credit interest payable. Explanation: Interest for 2016 to be recognised in 2016 with corresponding liability.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.