acc 200 chapter 3 pt. 2

Smart Touch Learning received furniture valued at $18,000 in exchange for shares of stock. Which account is debited in the initial journal entry?

Which of the following characteristics describes plant assets?

How is the usage of plant assets recorded in accounting?

What is the primary purpose of depreciating a plant asset?

A company uses the straight-line method to depreciate an asset. What does this method ensure regarding depreciation expense?

If Smart Touch Learning calculates $300 of depreciation for December on an asset, what journal entry is required?

What type of account is Accumulated Depreciation and how does it affect the balance sheet?

How do you calculate the book value of a plant asset?

Orlando Gold Exchange purchased computers for $57,600 on October 1, with an expected useful life of 4 years and no residual value. What is the straight-line depreciation expense for the month of October?

Orlando Gold Exchange purchased computers on October 1 for $57,600. If the accumulated depreciation for the computers is $1,200 by October 31, what is the book value of the computers on October 31?

What is the primary characteristic of deferred revenue?

Smart Touch Learning receives $600 in advance on December 21 for e-learning services to be provided over the next 30 days. What account is credited in the original entry?

Smart Touch Learning performs 1/3 of e-learning services for which it received advance payment. What adjusting entry is made?

Eastside Magazine collects $24,000 in advance for one-year subscriptions. entry required to record the initial receipt of cash?

Eastside Magazine earns $2,000 in subscription revenue that had been collected in advance adjusting entry should Eastside Magazine record?

Which of the following is an example of an accrued expense?

Smart Touch Learning pays its employee a monthly salary of $2,400, half on the 15th and half on the first day of the next month. What adjusting entry is made on December 31?

Smart Touch Learning owes its employee $1,200 for accrued salaries on December 31, which is paid on January 1. In which accounts is the payment recorded on January 1?

If Smart Touch Learning borrowed $60,000 on December 1 with a 2% interest rate, how much interest expense should be accrued as of December 31?

On December 15, Smart Touch Learning agrees to perform services for $1,600 per month, with payment to be received on January 15. By December 31, what revenue has to be accrued?

If a company performs a service but has not yet collected cash, how is this situation recorded regarding adjusting entries?

Which type of adjusting entry involves adjusting for revenue earned later?

The Orlando Corporation began business this year. The company purchased a machine for $70,000 with a salvage value of $10,000. The machine is expected to last 5 years. Under the Straight-Line Method, what is the depreciation expense for the first year?

On January 1, 2024, a corporation has $30,000 in its unearned account. By December 31, 2024, $22,000 has been fullfilled. What is the adjusting journal entry by December 31st?

A business originally had $16,500 in service revenue, however, after adjusting entries, that amount went up to $17,500. Which of the following best describes the revenue increasing?

Which of the following best describes the purpose of an adjusted trial balance?

After preparing the adjusted trial balance, what is the next step in the accounting cycle?

A company fails to record accrued expenses. What is the impact on the financial statements?

If a company fails to record accrued revenue, how are the financial statements affected?

What is the primary purpose of using a worksheet in preparing adjusting entries and the adjusted trial balance?

Which section is not generally found on an accounting worksheet?

How are the balances on the adjusted trial balance used?

On December 31, a business owes $1,500 for utilities used in December, which is not yet paid. What is the journal entry to record this?

What is the impact on the financial statements when a company receives cash before it earns the revenue?

In addition to the cash account, which two rules could remember about adjusting entries?

In Exhibit 3-4, under panel B, which describes Salaries Expense, what should be debited and what should be credited?

For prepaid expenses, which of the following is journalized?

Smart Touch Learning initially records furniture received in exchange for stock at its market value. How does this affect the accounting equation?

How does the concept of 'residual value' impact the annual depreciation expense calculated using the straight-line method?

If Eastside Magazine fails to make an adjusting entry for subscription revenue earned but initially recorded as unearned revenue, what is the impact on the balance sheet?

Smart Touch Learning's worksheet includes columns for unadjusted trial balance, adjustments, adjusted trial balance, income statement, and balance sheet. In which columns would the accrued service revenue be recorded before and after adjustment?

Orlando Gold Exchange purchased computers for $57,600 and records depreciation using the straight-line method. What is the relationship between the accumulated depreciation of these computers over time and their book value?