Can someone please answer? 56. A magazine company received $1,200 cash for subscriptions in August for magazines
Question:
Can someone please answer?
56. A magazine company received $1,200 cash for subscriptions in August for magazines to be mailed in September 2004 through December 2004. It originally recorded the amount received in a "temporary" account. After mailing 1/4 of the magazines in September 2004, the correct adjusting entry at the end of September (adjusting entries are made monthly by the Company) will be:
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| None of the above. |
58. The accountant for the McCarthy Company forgot to make an adjusting entry to record depreciation for the current year. The effect of this error would be:
| An overstatement of net income and an understatement of assets. | ||
| An overstatement of assets offset by an understatement of owners' equity. | ||
| An overstatement of assets, net income, and owners' equity. | ||
| An overstatement of assets and of net income and an understatement of owners' equity. |
60.
At the end of its first year of operations, after adjustments were properly recorded, White, Inc. had the following adjusted account balances:
Prepaid Rent 2,000 Accumulated Depreciation-Trucks 6,000
Insurance Expense 4,000 Interest Expense 4,000
Supplies Expense 8,000 Accounts Receivable 39,000
Accounts Payable 11,000 Unearned Revenue 1,000
Service Revenue 160,000 Prepaid Insurance 2,000
Trucks 66,000 Wages Expense 92,000
Wages Payable 5,000 Depreciation Expense 6,000
Dividends 3,000 Common Stock 45,000
Interest Revenue 2,000 Cash 4,000
Each of these accounts has the normal debit or credit balance.
In preparing the closing entries, the fourth closing entry, to close the Dividends account, would include a:
| debit to Income Summary of $3,000. | ||
| credit to Income Summary of $3,000. | ||
| debit to Retained Earnings of $3,000. | ||
| credit to Retained Earnings of $3,000. | ||
| None of the above |
62.
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The following balances were taken from the ADJUSTED TRIAL BALANCE of Terrapin Corp. for the fiscal year ending December 31, 2003.
Cash $ 8,500 Accounts Receivable 25,000
Prepaid Rent 2,000 Equipment 42,000
Accumulated Depreciation – Equipment 5,500 Accounts Payable 7,000
Unearned Revenue 1,000 Wages Payable 2,000
Common Stock 30,000 Retained Earnings, 1/1/2003 5,000
Dividends 1,000 Service Revenue 30,000
Notes Payable, Due 5/1/2005 21,500 Rent Expense 3,000
Interest Expense 1,000 Wages Expense 17,000
Depreciation Expense -- Equipment 3,500 Notes Payable, Due 5/1/2004 1,000Each of these accounts has the normal debit or credit balance.
The NET INCOME for the year is:$ 4,500
$ 6,500
$ 5,500
$ 30,000
None of the above
Expert Answer:
Solution 56 The correct adjusting entry at the end of September would be Subscriptions Revenue 300 U... View the full answer
