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AIPB book 1 sect 3 Test

Enter the letter for the matching Answer
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1.
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.
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2.
14)An expense is accrued by debiting a(n) _______ account and crediting a(n)________ account.
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3.
23)Accrue salaries expense of 42,000
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4.
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.
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5.
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.)
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6.
Of the 1,000 in commission payable on December 31, only 400was paid
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7.
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.
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8.
21) Make AJE: Accrue utility expense 2,500
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9.
9)If your company forgets to accrue utilities expense at year end, how does it affect net income?
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10.
2) Make AJE: Accrue property tax expense $1,200
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11.
22) Accrue sales commission of 18,000
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12.
26)A company failed to accrue employee salary expense. What effect does this have on net income and liabilities respectively?
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13.
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.
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14.
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?
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15.
17) On December 31, 19X1, Faco incurs wage expense of $8,000 for December 29-31 that has not been either recored or paid.
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16.
18)Rent for December of $2,300 will be paid on January 2.
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17.
1) Make AJE: Accrue interest expense $3000
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18.
3) Make AJE: Accrue salaries expense of $10,000
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19.
5)What adjusting entry (if any) do you record ifthe accounting period ends on a saturday?
A.
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
B.
14) expense, payable (or liability)
C.
19) Dr. Commissions expense 400- Cr. Cash 400 - AJE Dr. Commissions expense 600 - Cr. Commissions payable 600 - To accrue commissions expense
D.
24) Dr. Salaries expense 80,000 - Cr. Salaries payable 80,000 - To accrue salaries expense
E.
29)
F.
1) Dr. Interest expense 3,000 - Cr. Interest payable 3,000 - To accrue interest expense
G.
17) Dr. Wages expene 8,000 - Cr. Wages payable 8,00 - To accrue wages expense
H.
26)Overstates net income and understates liabilities
I.
22) Dr. Sales commision expense 18,000 - Cr. Sales commission payable 18,000 - To accrue sales commission
J.
9) Net income will be overstated
K.
7) Dr. interest expense 1,000 - Cr. Interest payable 1,000 - To accrue 2 months interest expense
L.
18)Dr. Rent expense 2,300 - Cr. Rent payable 2,000 - To accrue rent expense
M.
23)Dr. Salaries expense 42,000 - Cr. Salaries payable 42,000 - To accrue salaries expense
N.
21)
O.
4) Dr. Salaries expense 4,000 - Cr. Salaries payable 4,000 - To accrue salaries expense
P.
2) Dr. Property taxes 1,200 - Cr. Property taxes payable 1,200 - To accrue property tax expense
Q.
3)Dr. Salaries expense 10,000 - Cr. Salaries payable - To accrue salaries expense
R.
6)Dr. Wages (or salaries) expense 32,000 - Cr. Wages (or salaries) payable 32,000 - To accrue wages
S.
5) Dr. Pension expense 120 - Cr. Pension payable 120 - To accrue pension expense
Type the Answer that corresponds to the displayed Question.
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20.
28)TRUE OR FALSE: An adjusting entry to accrue interest expense does not involve cash.
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21.
12) TRUE OR FALSE : With an accrued expense, payment follows recognition of the expense.
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22.
16)An expense recorded as incurred but not paid is presented as a(n)________ on the balance sheet
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23.
27)TRUE OR FALSE: An accrued expense is paid when incurred
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24.
13) An accrued expense is one that has been _____ but not _______
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25.
10) If a company fails to record an ajusting entry for property taxes, then net icome will be.....
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26.
8)What kind of account is Taxes Payable?
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27.
25)TRUE OR FALSE: Accrued taxes appear on the balance sheet as a liability.
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28.
15) An adjusting entry to accrue an expense (increases/decreases) net incom
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29.
11) TRUE OR FALSE: An accrued expense is one that is incurred but not yet paid.

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