1. Which journal entry reflects the adjusting entry needed on December 31?:
In November, BOC prepaid $30,000 of rent for December, January, and February (and it was recorded properly). Now, it is December 31, the end of the fiscal year.
No entry needed.
Dr. Rent Expense 30,000
Cr. Prepaid Rent 30,000
Dr. Rent Expense 30,000
Cr. Cash 30,000
Dr. Rent Expense 10,000
Cr. Cash 10,000
Dr. Rent Expense 10,000
Cr. Prepaid Rent 10,000
2. Which journal entry reflects the adjusting entry needed on December 31?:
Last year, BOC purchased software for $10,000. The expected life of the software is 2 years and it has no expected salvage value. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this software during the year.
Dr. Software Amortization Expense 5,000
Cr. Software Revenue 5,000
No entry needed.
Dr. Software Amortization Expense 5,000
Cr. Software 5,000
Dr. Software Amortization Expense 5,000
Cr. Cash 5,000
Dr. Software Amortization Expense 5,000
Cr. PP&E 5,000
3. Which journal entry reflects the adjusting entry needed on December 31?:
In September, BOC received an order for $500,000 of products that will be delivered and billed in January. Now, it is December 31, the end of the fiscal year, and no prior entry has been recorded for this order.
Dr. Advances from Customers 500,000
Cr Revenue 500,000
No entry needed.
Dr. Order Backlog 500,000
Cr Revenue 500,000
Dr. Accounts Receivable 500,000
Cr Revenue 500,000
Dr. Accounts Receivable 500,000
Cr Unearned Revenue 500,000
4. Which item would not appear on the Income Statement?
SG&A Expense
Operating Income
Gross Profit
Pre-tax Income
Dividends
5. Which of the following are temporary accounts? (check all that apply)
Dividends Payable
Income Tax Expense
Retained Earnings
Cost of Goods Sold
Sales Revenue