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ACC 290 Week 4 Practice Connect Knowledge Check (2019 Latest)

ACC 290 Week 4 Practice Connect Knowledge Check (2019 Latest)
 

Complete the Week 4 Knowledge Check in Connect.

Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded.

These assignments have earlier due dates, so plan accordingly.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

 

On a worksheet, a net loss is:

Multiple Choice

 

 

 

 
 

 

 

not recorded.

 

 

 

 
 

 

 

recorded in the Balance Sheet Credit column.

 

 

 

 
 

 

 

recorded in the Income Statement Debit column.

 

 

 

 
 

 

 

recorded in the Balance Sheet Debit column.

 

 

 

On December 31, Treats Catering Inc.’s trial balance shows a $1,000 balance in the Supplies account. However, a physical count of the supplies determined that only $350 of supplies actually remain in the supply cabinet. Select the adjusting entry made on December 31, to record the amount of supplies that had been used during the year.

Multiple Choice

 

 

 

 
 

 

 

 

Supplies Expense………..      $     350

Supplies…………….                  $     350

________________________________________

 

 

 

 
 

 

 

 

Supplies Expense………..      $     650

Supplies…………….                  $     650

________________________________________

 

 

 

 
 

 

 

 

Supplies………..     $     350

Supplies Expense…………….            $     350

________________________________________

 

 

 

 
 

 

 

 

Supplies………..     $     650

Supplies Expense…………….            $     650

________________________________________

 

 

 

 

On January 1, 2019, Johnson Consulting purchased a truck for $18,000. The truck is expected to last 60 months and have no salvage value. Calculate the book value of the truck on December 31, 2020.

Multiple Choice

 

 

 

 
 

 

 

$3,600

 

 

 

 
 

 

 

$10,800

 

 

 

 
 

 

 

$14,400

 

 

 

 
 

 

 

$7,200

 

 

 

On October 25, 2019, the company paid $24,000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include:

Multiple Choice

 

 

 

 
 

 

 

a $8,000 debit to Rent Expense.

 

 

 

 
 

 

 

a $8,000 credit to Rent Expense.

 

 

 

 
 

 

 

a $4,000 credit to Prepaid Rent.

 

 

 

 
 

 

 

a $24,000 credit to Cash.

 

 

 

 

Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?

Multiple Choice

 

 

 

 
 

 

 

Debit Depreciation; credit Depreciation Expense

 

 

 

 
 

 

 

Debit Depreciation Expense; credit Accumulated Depreciation

 

 

 

 
 

 

 

Debit Accumulated Depreciation; credit Depreciation Expense

 

 

 

 
 

 

 

Debit Depreciation Expense; credit Equipment

 

 

 

 

On July 1, Sidney Consulting Services paid $18,000 for 12 months of advance rent on its office building. Select the adjusting entry made on December 31, to record the amount of rent that had expired during the year.

Multiple Choice

 

 

 

 
 

 

 

 

Rent Expense………..     $     9,000

Prepaid Rent…………….            $     9,000

________________________________________

 

 

 

 
 

 

 

 

Prepaid Rent………..      $     18,000

Rent Expense…………….                  $     18,000

________________________________________

 

 

 

 
 

 

 

 

Rent Expense………..     $     10,500

Prepaid Rent…………….            $     10,500

________________________________________

 

 

 

 
 

 

 

 

Prepaid Rent………..      $     10,500

Rent Expense…………….                  $     10,500

 

 

 

 

 

The adjusting entry to account for the expiration of prepaid insurance consists of:

Multiple Choice

 

 

 

 
 

 

 

a debit to Insurance Expense and a credit to Accumulated Depreciation.

 

 

 

 
 

 

 

a debit to Insurance Expense and a credit to Prepaid Insurance.

 

 

 

 
 

 

 

a debit to Accumulated Depreciation and a credit to Prepaid Insurance.

 

 

 

 
 

 

 

a debit to Prepaid Insurance and a credit to Accumulated Depreciation.

 

 

 

 

The unadjusted net income on the income statement was $46,850. After journalizing and posting the adjusting entry for the $2,300 of supplies used during the year, the adjusted net income is:

Multiple Choice

 

 

 

 
 

 

 

$45,700.

 

 

 

 
 

 

 

$49,150.

 

 

 

 
 

 

 

$46,850.

 

 

 

 
 

 

 

$44,550.

 

 

 

MacGyver Company bought equipment on January 3, 2019, for $52,000. At the time of purchase, the equipment was estimated to have a useful life of five years and a salvage value of $4,000. Using the straight-line method, the amount of one year’s depreciation is:

Multiple Choice

 

 

 

 
 

 

 

$10,400.

 

 

 

 
 

 

 

$4,000.

 

 

 

 
 

 

 

$1,200.

 

 

 

 
 

 

 

$9,600.

 

 

 

Accumulated Depreciation, Equipment, is shown as:

Multiple Choice

 

 

 

 
 

 

 

an addition to expenses on the Income Statement.

 

 

 

 
 

 

 

a deduction from assets on the Balance Sheet.

 

 

 

 
 

 

 

an addition to assets on the Balance Sheet.

 

 

 

 
 

 

 

a deduction of Capital on the Statement of Owner’s Equity.

 

 

 

 

Accumulated Depreciation, Equipment, is shown as:

Multiple Choice

 

 

 

 
 

 

 

an addition to expenses on the Income Statement.

 

 

 

 
 

 

 

a deduction from assets on the Balance Sheet.

 

 

 

 
 

 

 

an addition to assets on the Balance Sheet.

 

 

 

 
 

 

 

a deduction of Capital on the Statement of Owner’s Equity.

 

 

 

 

Which of the following statements is correct?

Multiple Choice

 

 

 

 
 

 

 

The cost of supplies used is reported on the statement of owner’s equity.

 

 

 

 
 

 

 

The cost of supplies used represents an operating expense of the business.

 

 

 

 
 

 

 

At the time of their acquisition, prepaid expenses are recorded in expense accounts.

 

 

 

 
 

 

 

Accumulated Depreciation–Equipment is presented in the Liabilities section of a balance sheet.

 

 

 

On a worksheet, the adjusted balance of the Supplies account is extended to:

Multiple Choice

 

 

 

 
 

 

 

the Balance Sheet Debit column.

 

 

 

 
 

 

 

the Income Statement Debit column.

 

 

 

 
 

 

 

the Income Statement Credit column.

 

 

 

 
 

 

 

the Balance Sheet Credit column.

 

 

 

Which of the following need not be completed separately if a worksheet is prepared?

Multiple Choice

 

 

 

 
 

 

 

a balance sheet

 

 

 

 
 

 

 

a trial balance

 

 

 

 
 

 

 

a statement of owner’s equity

 

 

 

 
 

 

 

an income statement

 

 

 

 

The adjustments made on the worksheet:

Multiple Choice

 

 

 

 
 

 

 

are recorded in the journal and then posted to the general ledger accounts.

 

 

 

 
 

 

 

need not be entered in the journal or the ledger.

 

 

 

 
 

 

 

are posted to the ledger but are not recorded in the journal.

 

 

 

 
 

 

 

are recorded in the journal but are not posted to the ledger.

 

 

 

 

If the prepaid expenses are not adjusted, assets on the balance sheet:

Multiple Choice

 

 

 

 
 

 

 

will not be affected.

 

 

 

 
 

 

 

may be either overstated or understated.

 

 

 

 
 

 

 

will be overstated.

 

 

 

 
 

 

 

will be understated.

 

 

 

 

The unadjusted net income on the income statement was $23,760. After journalizing and posting the adjusting entries for the $1,620 of supplies used and $3,700 of depreciation on the company’s equipment for the year, the adjusted net income is:

Multiple Choice

 

 

 

 
 

 

 

$25,840.

 

 

 

 
 

 

 

$29,080.

 

 

 

 
 

 

 

$21,680.

 

 

 

 
 

 

 

$18,440.

 

 

 

 

The total assets on the balance sheet was $128,800 before journalizing and posting the adjusting entries for $800 of expired insurance, $2,400 of expired rent and $900 of depreciation.  What are the total assets after journalizing and posting the adjusting?

Multiple Choice

 

 

 

 
 

 

 

$128,800.

 

 

 

 
 

 

 

$126,500.

 

 

 

 
 

 

 

$124,700.

 

 

 

 
 

 

 

$132,900.

 

 

 

 

A total of $2,800 in supplies was purchased during the year. At the end of the year $700 of the supplies were left. The adjusting entry needed at the end of the year is:

Multiple Choice

 

 

 

 
 

 

 

debit Supplies $2,100; credit Supplies Expense $2,100

 

 

 

 
 

 

 

debit Supplies Expense $2,100; credit Supplies $2,100

 

 

 

 
 

 

 

debit Supplies Expense $2,800; credit Supplies $2,800

 

 

 

 
 

 

 

debit Supplies Expense $700; credit Supplies $700

 

 

 

 

Which of the following statements is not correct?

Multiple Choice

 

 

 

 
 

 

 

Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.

 

 

 

 
 

 

 

Buildings and trucks are examples of long-term assets.

 

 

 

 
 

 

 

The book value of a long-term asset is reduced each year as depreciation is recorded.

 

 

 

 
 

 

 

Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset.

 

 

 

 

Equipment cost $36,000 and is expected to be useful for 5 years and have no salvage value. Under the straight-line method, monthly depreciation will be:

Multiple Choice

 

 

 

 
 

 

 

$12.

 

 

 

 
 

 

 

$720.

 

 

 

 
 

 

 

$600.

 

 

 

 
 

 

 

$60.

 

 

 

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents 12 months rent paid on November 1. The adjusting entry required on December 31 to show the amount of rent that had expired is:

Multiple Choice

 

 

 

 
 

 

 

 

Rent Expense………..     $     1,000

Prepaid Rent…………….            $     1,000

________________________________________

 

 

 

 
 

 

 

 

Rent Expense………..     $     12,000

Cash…………….                $     12,000

________________________________________

 

 

 

 
 

 

 

 

Rent Expense………..     $     2,000

Prepaid Rent…………….            $     2,000

________________________________________

 

 

 

 
 

 

 

 

Prepaid Rent………..      $     12,000

Rent Expense…………….                  $     12,000

________________________________________

 

 

 

 

If long-term assets are not adjusted, expenses on the income statement:

Multiple Choice

 

 

 

 
 

 

 

may be either overstated or understated.

 

 

 

 
 

 

 

will be overstated.

 

 

 

 
 

 

 

will not be affected.

 

 

 

 
 

 

 

will be understated.

 

 

 

 

If a worksheet is prepared at the end of the accounting year,

Multiple Choice

 

 

 

 
 

 

 

the financial statements are prepared using the worksheet data.

 

 

 

 
 

 

 

preparation of the financial statements is not required.

 

 

 

 
 

 

 

the adjusting entries do not need to be journalized.

 

 

 

 
 

 

 

only a balance sheet is required.

 

 

 

 

 

 

B. Consulting purchased a machine for $6,000 on August 1, 2019. The company expects the useful life of the machine to be 5 years and no salvage value is expected. If the company uses the straight-line method to depreciate the machine, what will be the depreciation adjustment for the year ending December 31, 2019?
 

 

 

Multiple Choice

 

 

 

 
 

 

 

Debit Depreciation Expense $500 and Credit Accumulated Depreciation $500.

 

 

 

 
 

 

 

Debit Depreciation Expense $500 and Credit Equipment $500.

 

 

 

 
 

 

 

Debit Depreciation Expense $400 and Credit Accumulated Depreciation $400.

 

 

 

 
 

 

 

Debit Accumulated Depreciation $100 and Credit Depreciation Expense $100.

 

 

 

 

A consecutive, twelve-month accounting period is called a(n):

Multiple Choice

 

 

 

 
 

 

 

accrual year.

 

 

 

 
 

 

 

accounting year.

 

 

 

 
 

 

 

fiscal year.

 

 

 

 
 

 

 

adjusted year.

 

 

 

 

The book value of long-term assets is reported on:

Multiple Choice

 

 

 

 
 

 

 

the statement of owner’s equity.

 

 

 

 
 

 

 

the balance sheet.

 

 

 

 
 

 

 

the worksheet.

 

 

 

 
 

 

 

the income statement.

 

 

 

On a balance sheet, Accumulated Depreciation—Equipment is reported:

Multiple Choice

 

 

 

 
 

 

 

as a contra-asset on the Balance Sheet.

 

 

 

 
 

 

 

as an expense on the Income Statement.

 

 

 

 
 

 

 

as a liability on the Income Statement.

 

 

 

 
 

 

 

as owner’s equity on the Balance Sheet

 

 

 

 

Adjusting Entries are:

Multiple Choice

 

 

 

 
 

 

 

not required.

 

 

 

 
 

 

 

corrections of errors.

 

 

 

 
 

 

 

updating entries for previously unrecorded expenses or revenues.

 

 

 

 
 

 

 

will always affect cash.

 

 

 

 

On a worksheet, the adjusting entry to account for depreciation of equipment consists of:

Multiple Choice

 

 

 

 
 

 

 

a debit to Depreciation Expense and a credit to Equipment.

 

 

 

 
 

 

 

a debit to Accumulated Depreciation and a credit to Equipment.

 

 

 

 
 

 

 

a debit to Depreciation Expense and a credit to Accumulated Depreciation.

 

 

 

 
 

 

 

a debit to Accumulated Depreciation and a credit to Depreciation Expense.

 

 

 

On a worksheet, the adjusted balance of the revenue account Fees Income would be extended to:

Multiple Choice

 

 

 

 
 

 

 

the Balance Sheet Debit column.

 

 

 

 
 

 

 

the Income Statement Credit column.

 

 

 

 
 

 

 

the Income Statement Debit column.

 

 

 

 
 

 

 

the Balance Sheet Credit column.

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