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The answer to Financial Accounting: adjusting entries

1. A trial balance prepared after the closing entries have been journalized and posted is the:

A. Unadjusted trial balance.

B. Post-closing trial balance.

C. General ledger.

D. Adjusted trial balance.

E. Work sheet.

2. How would the accounting equation of Austin Company be affected by the billing of a client for $10,000 of consulting work completed?

A. +$10,000 accounts receivable, -$10,000 accounts payable.

B. +$10,000 accounts receivable, +$10,000 accounts payable.

C. +$10,000 accounts receivable, +$10,000 cash.

D. +$10,000 accounts receivable, +$10,000 revenue.

E. +$10,000 accounts receivable, - $10,000 revenue.

3. A credit is used to record:

A. A decrease in an expense account.

B. A decrease in an asset account.

C. An increase in an unearned revenue account.

D. An increase in a revenue account.

E. All of the above.

4. Of the following accounts, the one that normally has a credit balance is:

A. Cash.

B. Office Equipment.

C. Sales Salaries Payable.

D. Owner, Withdrawals.

E. Sales Salaries Expense.

5. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

A. Debit Office Supplies $105 and credit Office Supplies Expense $105.

B. Debit Office Supplies Expense $105 and credit Office Supplies $105.

C. Debit Office Supplies Expense $254 and credit Office Supplies $254.

D. Debit Office Supplies $254 and credit Office Supplies Expense $254.

E. Debit Office Supplies $105 and credit Supplies Expense $254.

Solution Preview

. A trial balance prepared after the closing entries have been journalized and posted is the:

D. Adjusted trial balance.

2. How would the accounting equation of Austin Company be affected by the billing of a ...

Solution Summary

Response guides regarding financial accounting and adjusting entries.

$2.19