Multiple choice
Thehonest1.Pleymeyer Realty generates revenue through its many rental properties. As of August 31, the
company has not collected $6,000 of August rental payments because of delinquencies. The
monthly adjusting journal entry at August 31
a. is not required until the past due rent payments are collected
b. will include a debit to Cash and a credit to Rent Revenue of $6,000.
c. will include a debit to Unearned Rent and a credit to Rent Revenue for $200.
d. will include a debit to Rent Receivable and a credit to Rent Revenue for $6,000.
2. At March 1, 2006, Striped Candy Delights Inc. had supplies on hand of $500. During the
month, Candy purchased supplies of $1,200 and used supplies of $1,500. The March 31
adjusting journal entry should include:
a. a debit to the supplies account for $1,500
b. a credit to the supplies account for $500
c. a debit to the supplies account for $1,200
d. a credit to the supplies account for $1,500
3. Quirk-Wit Company purchased office supplies costing $4,000 and debited Office Supplies for
the full amount. At the end of the accounting period, a physical count of office supplies revealed
$1,600 still on hand. The appropriate adjusting journal entry to be made at the end of the period
would be
a. Debit Office Supplies Expense, $1,600; Credit Office Supplies, $1,600.
b. Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400.
c. Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400.
d. Debit Office Supplies, $1,600; Credit Office Supplies Expense, $1,600.
4. Silver Fleet Services Company purchased equipment for $5,000 on January 1, 2006. The
company expects to use the equipment for 5 years. It has no salvage value. What balance
would be reported on the December 21, 2006 balance sheet for Accumulated Depreciation?
a. $0 because Accumulated Depreciation is reported on the Income Statement
b. $1,000
c. $4,000
d. $5,000
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