21) A Cut Above, Inc. has the following accounts with normal balances on its December 31, 2011 adjusted trial balance after its first year of business.
Cash
$ 400
Accounts receivable
200
Insurance expense
Equipment
800
Accumulated depreciation
100
Depreciation expense
Service revenue
1,000
Wages payable
Wages expense
300
Supplies expense
Common stock
Dividends
A Cut Above, Inc.'s net income for the year ended December 31, 2011 equals ________.
A) $600
B) $500
C) $400
D) $300
22) Adjusting journal entries must be recorded prior to preparing an unadjusted trial balance.
23) The adjusting entry to record supplies used includes a debit to Supplies expense and a credit to Supplies.
24) A typical adjusting entry to record includes a debit to Cash and a credit to Sales.
25) Adjusting journal entries are made at the beginning of each period.
26) Adjusting journal entries are made at the end of each period before closing entries are recorded.
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