income statement account and one balance sheet account
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Accumulated Depreciation and Depreciation Expense are classified, respectively, as
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contra asset, expense
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Prepaid rent, representing rent for the next six months' occupancy, would be reported on the tenant's balance sheet as a(n)
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asset
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Using accrual accounting, expenses are recorded and reported only
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when they are incurred, whether or not cash is paid
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Using accrual accounting, revenue is recorded and reported only
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when the services are rendered without regard to when cash is received
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The balance in the prepaid rent account before adjustment at the end of the year is $16,685, which represents 6 months' rent paid on December 1. The adjusting entry required on December
needed to bring accounts up to date and match revenue and expense
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What effect will this adjusting journal entry have on the accounting records?
Supplies Expense 760
Supplies 760
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decrease net income
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The supplies account had a balance of $4,274 at the beginning of the year and was debited during the year for $2,590, representing the total of supplies purchased during the year. If $346 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is
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$6,518
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The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed
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book value
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Buster Industries pays weekly salaries of $31,300 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is
The account type and normal balance of Unearned Revenue would be
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liability, credit
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Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $18,865 and unexpired insurance of $3,156, for the fiscal year ending on April 30?
