101.Prepaid advertising, representing payment for the next quarter, would be reported on the balance sheet as a(n)
a.asset
b.liability
c.contra asset
d.stockholders' equity
102.Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheetas a(n)
a.asset
b.liability
c.stockholders' equity account
d.contra liability
103.Accrued expenses are ordinarily reported on the balance sheet as
a.assets
b.liabilities
c.fixed assets
d.prepaid expenses
104.Fees payable would appear on the balance sheet as a(n)
a.asset
b.liability
c.fixed asset
d.unearned revenue
105.The adjusting entry for gym memberships earned that were previously recorded in the unearned gym membershipsaccount is
a.debit Unearned Gym Memberships; credit Gym Memberships Revenue
b.debit Gym Memberships Revenue; credit Unearned Gym Memberships
c.debit Unearned Gym Memberships; credit Prepaid Gym Memberships
d.debit Gym Memberships Expense; credit Unearned Gym Memberships
106.Which of the following pairs of accounts could
notappear in the same adjusting entry?
a.Service Revenue and Unearned Revenue
b.Interest Income and Interest Expense
c.Rent Expense and Prepaid Rent
d.Salaries Payable and Salaries Expense
107.The unearned rent account has a balance of $72,000. If $18,000 of the $72,000 is unearned at the end of theaccounting period, the amount of the adjusting entry is
a. $18,000
b. $90,000
c. $54,000
d. $36,000
108.The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.
Unearned Revenue7,500
Fees Earned7,500
????????????????
a.Record payment of fees earned.
b.Record fees earned at the end of the month.
c.Record fees that have not been earned at the end of the month.
d.Record payment of fees to be earned.
109.The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.
Supplies Expense730
Supplies730
????????????????
a.Adjust supplies inventory to actual.
b.Record purchase of supplies.
c.Reduce supplies expense.
d.Record sale of supplies.
110.The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation forthe entry.
Wages Expense4,500
Wages Payable4,500
????????????????
a.Record payment of wages.
b.Record wages paid last month.
c.Record wages paid in advance.
d.Record wages expense incurred and to be paid next month.