Reference no: EM131744654

Question: 1. Unfortunately, the bookkeeper notices that two transactions for Patio Publications were not reflected in the balances of the trial balance: one to record $800 of accrued wages and salaries to be paid in the next period, and the other was the use of $560 of office supplies from the supplies on hand. If the Trial Balance column totals are $15,380 prior to discovering these mistakes, what are the totals of the Trial Balance columns after the corrections are made?

a.$15,140

b.$16,740

c.$16,180

d.$15,860

2. What effect does "recognizing an accrued liability for utilities at the end of the accounting period" have on the accounting equation?

a.Liabilities increase and stockholders' equity decreases.

b.Assets decrease and liabilities decrease.

c.Liabilities increase and stockholders' equity increases.

d.Assets decrease and stockholders' equity decreases.

3. What happens to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?

a.Liabilities increase and stockholders' equity decreases.

b.Assets decrease and stockholders' equity decreases.

c.Assets increase and stockholders' equity increases.

d.Assets decrease and liabilities decrease.

4. Starlight Associates, Inc. recorded salary expense of $100,000 in 2016. However, additional salaries of $5,000 had been earned, but not paid or recorded at December 31, 2016. After the adjustments are recorded and posted at December 31, 2016, the balances in the Salaries Expense and Salaries Payable accounts will be:

      Salaries Expense         Salaries Payable

a.        $105,000                      $ 0

b.        $105,000                    $5,000

c.        $100,000                    $5,000

d.        $100,000                       $ 0