51) A company has $500 in Prepaid Advertising before any adjustments. At the end of the year, an adjusting entry is made to debit Advertising Expense for $100. The ending balance in the Prepaid Advertising account will be:
A) $0.
B) $100.
C) $400.
D) $500
52) On December 1, 2015, Carrie's Day Care receives $3,000 in advance for an agreement to care for Susan's children for the months of December, January, and February. Carrie's Day Care will make an adjusting entry on December 31, 2015 to:
A) credit Revenue for $3,000.
B) debit Unearned Revenue for $1,000.
C) credit Revenue for $2,000.
D) credit Prepaid Revenue for $2,000.
53) At December 31, the NBC Company owes an employee for four days of work that will not be paid until January 5th. The weekly rate of pay for a five-day workweek is $1,000.The adjusting entry to record the accrued wages will include a:
A) debit to Salaries Payable for $1,000.
B) debit to Salaries Expense for $1,000.
C) debit to Salaries Payable for $800.
D) debit to Salaries Expense for $800.
54) Deere Company holds a $10,000 note receivable dated July 1, 2015, with 10% interest. What adjusting entry is needed on December 31, 2015?
A) No entry is needed.
B) Debit Interest Receivable for $100 and credit Interest Revenue for $100
C) Debit Interest Receivable for $500 and credit Interest Revenue for $500
D) Debit Interest Receivable for $1,000 and credit Interest Revenue for $1,000
55) Why are adjusting entries prepared?
A) Because some accounts are not up to date.
B) Because some day to day transactions have not been recorded.
C) Because the financial statements are misstated.
D) A and C
56) If adjusting entries are not prepared, which financial statements are misstated?
A) income statement only
B) balance sheet only
C) statement of retained earnings only
D) income statement, balance sheet and statement of retained earnings
57) The Trial Balance Worksheet does NOT have columns for:
A) adjusting journal entries.
B) closing journal entries.
C) unadjusted trial balance.
D) adjusted trial balance.
58) If a Trial Balance Worksheet is used to prepare the financial statements, which columns are used to prepare the financial statements?
A) unadjusted trial balance columns
B) adjustments columns
C) adjusted trial balance columns
D) none of the above
59) A Trial Balance Worksheet can be used to prepare:
A) balance sheet.
B) income statement.
C) statement of retained earnings.
D) all of the above.
60) The Adjustments columns of the Trial Balance Worksheet summarize the:
A) day-to-day journal entries.
B) closing journal entries.
C) adjusting journal entries.
D) cash-basis journal entries.