Mini Worksheets Accounting

At the end of the accounting period, the Prepaid Insurance account needs to be adjusted by $721 to reflect insurance that has been used during the period. How is the adjustment recorded on the multicolumn trial balance worksheet?

• In the Adjustments columns, debit Insurance Expense, $721; credit Prepaid Insurance, $721.

• In the Adjustments columns, debit Prepaid Insurance, $721; credit Insurance Expense, $721.

• In the Income Statement columns, debit Insurance Expense, $721; credit Prepaid Insurance, $721.

• In the Trial Balance columns, debit Prepaid Insurance, $721; credit Insurance Expense, $721.

Supplies-Store has a balance of $2,200. At the end of the month, a physical count of the Supplies-Store items shows $1,200 is on hand. How is the adjusting entry to Supplies-Store recorded on a multicolumn trial balance worksheet?

• In the Adjustments columns, debit Supplies-Store, $1,000; credit Supplies Expense-Store, $1,000.

• In the Adjustments columns, debit Supplies Expense-Store, $1,000; credit Supplies-Store, $1,000

• In the Adjustments columns, debit Supplies-Store, $1,200; credit Supplies Expense-Store, $1,200.

• In the Adjustments columns, debit Supplies Expense-Store, $1,200; credit Supplies-Store, $1,200.

Supplies-Office has a balance of $3,500. At the end of the month, a physical count of the Supplies-Office items shows $1,500 is on hand. How is the adjusting entry to Supplies-Office recorded on a multicolumn trial balance worksheet?

• In the Adjustments columns, debit Supplies-Office, $2,000; credit Supplies Expense-Office, $2,000.

• In the Adjustments columns, debit Supplies Expense-Office, $2,000; credit Supplies-Office, $2,000.

• In the Adjustments columns, debit Supplies-Office, $1,500; credit Supplies Expense-Office, $1,500.

• In the Adjustments columns, debit Supplies Expense-Office, $1,500; credit Supplies-Office, $1,500.

If an account called Supplies carries a balance of $1,500 to begin a month.

At the end of the month, a $500 is adjusted.

What would the new balance (extension) of the Supplies account be?

• $2,000 Debit

• $1,500 Debit

• $1,000 Debit

• $500 Credit

What is the extension of the Supplies Account?

• $400

• $600

• $100

• $1,500

The debit total in a worksheet is $2,500 and the credit column totals $1,000.

What are the total sales for this month?

• $2,500

• $1,000

• $1,500 Net Loss

• $1,500 Net Income

The debit total in a worksheet is $2,500 and the credit column totals $1,000.

What are the total expenses for this month?

• $2,500

• $1,000

• $1,500 Net Loss

• $1,500 Net Income

The debit total in a worksheet is $2,500 and the credit column totals $1,000.

What will be reflected as an outcome on the last line of the Income Statement?

• $2,500

• $1,000

• $1,500 Net Loss

• $1,500 Net Income

The journal entry to adjust Supplies is:

• debit Supplies, credit Supplies Expense.
• debit Supplies Expense, credit Supplies.
• debit Income Summary, credit Supplies.
• debit Supplies Expense, credit Income Summary.

Which of the following is true about adjusting entries?

• They are optional in the accounting process

• They are made at the beginning of an accounting period

• They ensure that revenues and expenses are recognized in the period they occur

• They are only used in cash basis accounting

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DOK Level 2: Skill/Concept