1. Supplies purchased on account were incorrectly recorded as Office Equipment. The correcting entry would be:
2. What is the proper adjusting entry at June 30, the end of the fiscal year, based on a supplies account balance before adjustment, $10,000, and supplies inventory on June 30, $1,000?
3. A business pays weekly salaries of $50,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Thursday is:
4. The supplies account has a balance of $1,000 at the beginning of the year and was debited during the year for $4,000, representing the total of supplies purchased during the year. If $500 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year would be:
5. Prepaid advertising, representing payment for the next quarter, would
6. Be reported on the balance sheet as a(n):
7. What is the proper adjusting entry at April 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $12,000 and unexpired amounts per analysis of policies, $4,000?
8. Accrued revenues would appear on the balance sheet as:
9. At the end of the fiscal year, the usual adjusting entry for accrued salaries owed to employees was omitted. Was net income for the year overstated or understated? Why?
10. At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Will asset for the year be overstated or understated?