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AIPB book 1 sect 3
AIPB certified bookkeeper, mastering adjusting entries,
| Question | Answer |
|---|---|
| 1) Make AJE: Accrue interest expense $3000 | 1) Dr. Interest expense 3,000 - Cr. Interest payable 3,000 - To accrue interest expense |
| 2) Make AJE: Accrue property tax expense $1,200 | 2) Dr. Property taxes 1,200 - Cr. Property taxes payable 1,200 - To accrue property tax expense |
| 3) Make AJE: Accrue salaries expense of $10,000 | 3)Dr. Salaries expense 10,000 - Cr. Salaries payable - To accrue salaries expense |
| 4) The company has a 6-day workweek and payday is Sat. Weekly salaries are $12,000, and your company contributes to each employee's pension by contributing 3% of salaries to the Pension Fund account. Make the AJE when the accounting period ends on a Tues. | 4) Dr. Salaries expense 4,000 - Cr. Salaries payable 4,000 - To accrue salaries expense |
| 5)What adjusting entry (if any) do you record ifthe accounting period ends on a saturday? | 5) Dr. Pension expense 120 - Cr. Pension payable 120 - To accrue pension expense |
| 6) Your payroll for the last week of the year (your company uses a 5-day workweek) is $40,000 and December 31 falls on a Thursday. Record the adjusting journal entry at year end. | 6)Dr. Wages (or salaries) expense 32,000 - Cr. Wages (or salaries) payable 32,000 - To accrue wages |
| 7) Your company borrows %50,000 on a 6-month,12% note on October 1. Year end is November 30. Record the accrued interest at November 30. | 7) Dr. interest expense 1,000 - Cr. Interest payable 1,000 - To accrue 2 months interest expense |
| 8)What kind of account is Taxes Payable? | 8) Liability |
| 9)If your company forgets to accrue utilities expense at year end, how does it affect net income? | 9) Net income will be overstated |
| 10) If a company fails to record an ajusting entry for property taxes, then net icome will be..... | 10) Overstated |
| 11) TRUE OR FALSE: An accrued expense is one that is incurred but not yet paid. | 11) True |
| 12) TRUE OR FALSE : With an accrued expense, payment follows recognition of the expense. | 12) True |
| 13) An accrued expense is one that has been _____ but not _______ | 13) Incurred, paid |
| 14)An expense is accrued by debiting a(n) _______ account and crediting a(n)________ account. | 14) expense, payable (or liability) |
| 15) An adjusting entry to accrue an expense (increases/decreases) net incom | 15) Decreases |
| 16)An expense recorded as incurred but not paid is presented as a(n)________ on the balance sheet | 16) Liability |
| 17) On December 31, 19X1, Faco incurs wage expense of $8,000 for December 29-31 that has not been either recored or paid. | 17) Dr. Wages expene 8,000 - Cr. Wages payable 8,00 - To accrue wages expense |
| 18)Rent for December of $2,300 will be paid on January 2. | 18)Dr. Rent expense 2,300 - Cr. Rent payable 2,000 - To accrue rent expense |
| Of the 1,000 in commission payable on December 31, only 400was paid | 19) Dr. Commissions expense 400- Cr. Cash 400 - AJE Dr. Commissions expense 600 - Cr. Commissions payable 600 - To accrue commissions expense |
| 21) Make AJE: Accrue utility expense 2,500 | 21) |
| 22) Accrue sales commission of 18,000 | 22) Dr. Sales commision expense 18,000 - Cr. Sales commission payable 18,000 - To accrue sales commission |
| 23)Accrue salaries expense of 42,000 | 23)Dr. Salaries expense 42,000 - Cr. Salaries payable 42,000 - To accrue salaries expense |
| 24) Your company has a 5-day workweek and pays employess on Friday. The weekly gross payroll is $100,000, and the year ends on Thursday. Record the adjusting Journal entry at year end. | 24) Dr. Salaries expense 80,000 - Cr. Salaries payable 80,000 - To accrue salaries expense |
| 25)TRUE OR FALSE: Accrued taxes appear on the balance sheet as a liability. | 25) True |
| 26)A company failed to accrue employee salary expense. What effect does this have on net income and liabilities respectively? | 26)Overstates net income and understates liabilities |
| 27)TRUE OR FALSE: An accrued expense is paid when incurred | 27)False |
| 28)TRUE OR FALSE: An adjusting entry to accrue interest expense does not involve cash. | 28)True |
| 29) On Dec 1, 19X3, Wyco, a calendar year company, borrows 30,000 on a 6-month, 8% note payable.The interest is payable at the maturity date.Of the amount borrowed, 6,000 will be used to pay Wycos 19X3 income tax when it files a return in 19X4. (CONT.) | 29) |
| 29)Another portion of the loan will go to pay part of wyco's weekly payroll of 12,000 for the last week of the year. Wyco uses a -day workweek and payday is Friday. What adjusting entries does wyco record on Tuesday, December 31, 19X3? | 29)Dr. Interest expense 200 - Cr. Interest payable 200 - To accrue interest expense - Dr. Income tax expense 6,000 - Cr. Income tax payable 6,000 - To accrue income tax exp - Dr. Salaries expense 4,800 - Cr. Salaries payable 4,800 - To accrue salaries exp |
Created by:
cidhart
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