176.Joyce’s Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $50,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?
a.Interest Expense......................................500
Interest Payable...........................................500
b.Interest Expense......................................7,500
Interest Payable...........................................7,500
c.Interest Expense......................................500
Cash500
d.Interest Expense......................................500
Note Payable...........................................500
177.Cindi’s Candies paid employee wages on and through Friday, January 26, and the next payroll will be paid in February. There are three more working days in January (29–31). Employees work 5 days a week and the company pays $900 a day in wages. What will be the adjusting entry to accrue wages expense at the end of January?
a.Salaries and Wages Expense..........................900
Salaries and Wages Payable....................................900
b.Salaries and Wages Expense..........................4,500
Salaries and Wages Payable....................................4,500
c.Salaries and Wages Expense..........................2,700
Salaries and Wages Payable....................................2,700
d.No adjusting entry is required.
178.A company shows a balance in Salaries and Wages Payable of ¥48,000 at the end of the month. The next payroll amounting to ¥54,000 is to be paid in the following month. What will be the journal entry to record the payment of salaries?
a.Salaries and Wages Expense.............................54,000
Salaries and Wages Payable....................................54,000
b.Salaries and Wages Expense.............................54,000
Cash54,000
c.Salaries and Wages Expense.............................6,000
Cash6,000
d.Salaries and Wages Expense.............................6,000
Salaries and Wages Payable....................................48,000
Cash54,000
179.A business pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on a Thursday is
a.debit Salaries and Wages Payable, $24,000; credit Cash, $24,000.
b.debit Salaries and Wages Expense, $24,000; credit Cash, $24,000.
c.debit Salaries and Wages Expense, $24,000; credit Salaries and Wages Payable, $24,000.
d.debit Salaries and Wages Expense, $6,000; credit Salaries and Wages Payable, $6,000.
180.Jenni’s Music Store borrowed $12,000 from the bank signing a 7%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be
a.Debit Interest Expense, $840; Credit Interest Payable, $840.
b.Debit Interest Expense, $70; Credit Interest Payable, $70.
c.Debit Note Payable, $840; Credit Cash, $840
d.Debit Cash, $210; Credit Interest Payable, $210.
181.Becki Jean Corporation issued a one-year, 6%, $300,000 note on April 30, 2014. Interest expense for the year ended December 31, 2014 was
a.$18,000.
b.$13,500.
c.$12,000.
d.$10,500.
182.RAS Corporation issued a one-year, 6%, €200,000 note on August 31, 2014. Interest expense for the year ended December 31, 2014 was
a.€ 12,000.
b.€ 5,000.
c.€ 4,000.
d.€ 3,000.
183.Employees at Julian Corporation are paid $15,000 cash every Friday for working Monday through Friday. The calendar year accounting period ends on Wednesday, December 31. How much salary expense should be recorded two days later on January 2?
a.$15,000
b.$9,000
c.None, matching requires the weekly salary to be accrued on December 31.
d.$6,000
184.Can financial statements be prepared directly from the adjusted trial balance?
a.They cannot. The general ledger must be used.
b.Yes, adjusting entries have been recorded in the general journal and posted to the ledger accounts.
c.No, the adjusted trial balance merely proves the equality of the total debit and total credit balances in the ledger after adjustments are posted. It has no other purpose.
d.They can because that is the only reason that an adjusted trial balance is prepared.
185.The adjusted trial balance is prepared
a.after financial statements are prepared.
b.before the trial balance.
c.to prove the equality of total assets and total liabilities.
d.after adjusting entries have been journalized and posted.