FA chapter 3

1

In which month should Kelly record the cost of the cleaning supplies as an expense?

1

In which month should Kelly report the $35 revenue on the company’s Income Statement?

1

If Kelly Company uses the cash basis of accounting instead of the accrual basis, in
which month will it report revenue and in which month will it report expense?

1

In which month should revenue be recorded?

1

Dumbo adjusts the accounts at the end of each month. Based on these facts, the adjusting entry
at the end of January should include:

1

Assume the same facts as in question 3-49. Dumbo’s adjusting entry at the end of
February should include a debit to Rent Expense in the amount of

1

What effect does the adjusting entry in question 3-50 have on Dumbo’s net income for
February?

1

An adjusting entry recorded April salary expense that will be paid in May. Which statement best describes the effect of this adjusting entry on the company’s accounting equation?

1

On April 1, 20X7, Royal Insurance Company sold a one-year insurance policy covering
the year ended April 1, 20X8. Royal collected the full $3,200 on April 1, 20X7. Royal made the
following journal entry to record the receipt of cash in advance:

Nine months have passed, and Royal has made no adjusting entries. Based on these facts, the
adjusting entry needed by Royal at December 31, 20X7, is:

1

The Unearned Revenue account of Genius Incorporated began 20X6 with a normal balance of $3,000 and ended 20X6 with a normal balance of $18,000. During 20X6, the Unearned
Revenue account was credited for $27,000 that Genius will earn later. Based on these facts, how
much revenue did Genius earn in 20X6?

1

What is the effect on the financial statements of recording depreciation on equipment?

1

For 20X6, Martin Company had revenues in excess of expenses. Which statement describes Martin’s closing entries at the end of 20X6?

1

Which of the following accounts would not be included in the closing entries?

1

A major purpose of preparing closing entries is to

1

Unadjusted net income equals $7,800. Calculate net income after the following adjustments: Salaries payable to employees, $680; Interest due on note payable at the bank, $120;
Unearned revenue that has been earned, $940; Supplies used, $360

1

Salary Payable at the beginning of the month totals $27,000. During the month, salaries
of $132,000 were accrued as expense. If ending Salary Payable is $18,000, what amount of
cash did the company pay for salaries during the month?

Quiz on FA chapter 3, created by meli ssa on 04/02/2019.

FA chapter 3

In which month should Kelly record the cost of the cleaning supplies as an expense?

In which month should Kelly report the $35 revenue on the company’s Income Statement?

If Kelly Company uses the cash basis of accounting instead of the accrual basis, in which month will it report revenue and in which month will it report expense?

In which month should revenue be recorded?

Dumbo adjusts the accounts at the end of each month. Based on these facts, the adjusting entry at the end of January should include:

Assume the same facts as in question 3-49. Dumbo’s adjusting entry at the end of February should include a debit to Rent Expense in the amount of

What effect does the adjusting entry in question 3-50 have on Dumbo’s net income for February?

An adjusting entry recorded April salary expense that will be paid in May. Which statement best describes the effect of this adjusting entry on the company’s accounting equation?

What is the effect on the financial statements of recording depreciation on equipment?

For 20X6, Martin Company had revenues in excess of expenses. Which statement describes Martin’s closing entries at the end of 20X6?

Which of the following accounts would not be included in the closing entries?

A major purpose of preparing closing entries is to

Unadjusted net income equals $7,800. Calculate net income after the following adjustments: Salaries payable to employees, $680; Interest due on note payable at the bank, $120; Unearned revenue that has been earned, $940; Supplies used, $360

Salary Payable at the beginning of the month totals $27,000. During the month, salaries of $132,000 were accrued as expense. If ending Salary Payable is $18,000, what amount of cash did the company pay for salaries during the month?

If Kelly Company uses the cash basis of accounting instead of the accrual basis, in
which month will it report revenue and in which month will it report expense?

Dumbo adjusts the accounts at the end of each month. Based on these facts, the adjusting entry
at the end of January should include:

Assume the same facts as in question 3-49. Dumbo’s adjusting entry at the end of
February should include a debit to Rent Expense in the amount of

What effect does the adjusting entry in question 3-50 have on Dumbo’s net income for
February?

Unadjusted net income equals $7,800. Calculate net income after the following adjustments: Salaries payable to employees, $680; Interest due on note payable at the bank, $120;
Unearned revenue that has been earned, $940; Supplies used, $360

Salary Payable at the beginning of the month totals $27,000. During the month, salaries
of $132,000 were accrued as expense. If ending Salary Payable is $18,000, what amount of
cash did the company pay for salaries during the month?