Reference no: EM13507275

1. Ryan Company purchased a machine on July 1, 2013. The machine cost $250,000 and has a salvage value of $10,000 and a useful life of eight years. The adjusting entry for the year ending December 31, 2014, would include a debit to Depreciation Expense of
$30,000.
$15,000.
$31,250.
$15,625.

2. An adjusting entry will not take the format of which one of the following entries
A debit to an expense account and a credit to an asset account
A debit to an expense account and a credit to a revenue account
A debit to an asset account and a credit to a revenue account
A debit to a liability account and a credit to a revenue account

3. The Supplies on Hand account balance at the beginning of the period was $6,600. Supplies totaling $12,825 were purchased during the period and debited to Supplies on Hand. A physical count shows $3,825 of Supplies on Hand at the end of the period. The proper journal entry at the end of the period
debits Supplies on Hand and credits Supplies Expense for $9,000.
debits Supplies Expense and credits Supplies on Hand for $12,825.
debits Supplies on Hand and credits Supplies Expense for $15,600.
debits Supplies Expense and credits Supplies on Hand for $15,600.

4. An accrued expense can be described as an amount
paid and matched with earnings for the current period.
paid and not matched with earnings for the current period.
not paid and not matched with earnings for the current period.
not paid and matched with earnings for the current period.

5. If an expense has been incurred but not yet recorded, then the end-of-period adjusting entry would involve
a liability account and an asset account.
a liability account and a revenue account.
a liability and an expense account.
a receivable account and a revenue account.

6. On August 1 of the current year, Kyle Company borrowed $278,000 from the local bank. The loan was for 12 months at 9 percent interest payable at the maturity date. The adjusting entry at the end of the fiscal year relating to this obligation would include a
debit to interest expense of $25,020.
debit to interest expense of $10,425.
credit to note payable of $10,425.
debit to interest receivable of $10,425.

7. Sky Company collected $12,350 in interest during 2013. Sky showed $1,850 in interest receivable on its December 31, 2013, balance sheet and $5,300 on December 31, 2012. The interest revenue on the income statement for 2013 was
$3,450.
$8,900.
$12,350.
$14,200.

8. Total net income over the life of an enterprise is
higher under the cash basis than under the accrual basis.
lower under the cash basis than under the accrual basis.
the same under the cash basis as under the accrual basis.
not susceptible to measurement.

9. A company sold 10,000 shares of its own $1 par value common stock for $60,000. The entry to record the sale would include a
debit to treasury stock for $60,000.
debit to contributed capital for $10,000.
credit to common stock, $1 par value for $10,000.
credit to common stock, $1 par value for $60,000.

10. Which of the following is true
Prepaid expenses are increased by a credit.
Gains are increased by a debit.
Losses are increased by a credit.
Accumulated depreciation is increased by a credit.