Accounting

Wilson Dacillo Animal Breeders bought equipment on Jan 3 of this year for 100,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade in value of 10,000 at the end of nine years. Using the straight line method, the amount of one year’s depreciation is…

• 11,110

• 12,220

• 90,000

• 10,000

Which of the following accounts is not adjusted?

• Accumulated Depreciation

• Depreciation Expense

• Owner’s Capital

• Salaries Payable

Failure to record the entry for accrued salaries results in…

• Profit being understated

• Salaries expense being understated

• Salaries payable being overstated

• Total assets being overstated

The entry to record expired insurance is omitted. The error causes…

• Assets to be overstated

• An increase in liabilities in the balance sheet

• Expense to be overstated

• Liabilities to be overstated

The adjusting entry to accrue salaries expense…

• Debit salaries expense and credit cash

• Debit salaries payable and credit cash

• Debit salaries payable and credit salaries expense

• Debit salaries expense and credit salaries payable

A law firm began November with office supplies of 16,000. During the month, the firm purchased supplies of 29,000. On November 30, supplies on hand totaled 21,000. Supplies expense for the period is…

• 24,000

• 29,000

• 45,000

• 21,000

Prepaid Insurance is 5,000. At the end of the month, the insurance still unexpired amounted to 2,000, the adjusting entry would contain…

• Credit to Prepaid insurance for 2,000

• Credit to Prepaid insurance for 3,000

• Debit to Insurance expense for 2,000

• Debit to Prepaid Insurance for 3,000

The adjusting entry to record depreciation of equipment is…

• Debit Accumulated Depreciation and Credit Depreciation Expense

• Debit Accumulated Depreciation and Credit Equipment

• Debit Depreciation Expense and Credit Accumulated Depreciation

• Debit Depreciation Expense and Credit Equipment

Accrued Expense…

• Decrease Assets

• Decrease Liabilities

• Increase Assets

• Increase Liabilities

The decrease in usefulness of property, plant and equipment as time passes is called…

• Consumption

• Contra Asset

• Depreciation

• Deterioration