Beruflich Dokumente
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1. An expense has not been paid and has not yet been recognized in the accounts by a
routine entry. To properly adhere to the Matching Principle, which of the following is
required:
2. Warren, Inc. has wages that have been earned but not paid at the end of the accounting
period. The entry to properly accrue Wages Expense includes:
3. Warren, Inc. neglects to make the required adjusting entry for wages at the end of the
accounting period. Which of the following statements reflect the impact of this
oversight?
a. Cash c. Assets
b. Liabilities d. Capital Stock
a. Cash c. Assets
b. Liabilities d. Capital Stock
Supplemental Instruction
ACCT 284 Chapter 4
7. At December 31, 2002, interest expense of $960 is owed on a two-year bank note that
will not be paid until July 2003, what is the appropriate accrual at the end of 2002?
8. Sandra's Styling Salon, a Sole Proprietorship, pays weekly salaries of $8,000 each
Friday for a five-day week ending on that day. The accrual required for a fiscal period
ending on a Tuesday includes a debit to Salaries Expense and a credit to Salaries
Payable for:
a. $1,600 c. $3,000
b. $2,000 d. $3,200
9. Rental Services, Inc. earned $2,000 of Rental Revenue in December 2001, but does not
expect payment until January 2002. What is the appropriate accrual entry at December
31, 2001?
10. Rental Services, Inc. reviews its records at the end of December 2001 in anticipation of
the end of its calendar year. This process reveals that:
$2,000 of Accounts Receivable outstanding at the beginning of December has
been collected and recorded.
The December utility bill has not yet been paid. A phone call to the provider
reveals that the invoice will total $1,200 and will be mailed on January 4, 2002.
Billing of $25,000 has been issued for the month.
Services of $5,000 to Construction Experts were completed on December 30,
2001, but billing will not be rendered until January 3, 2002.
Rental Services makes all appropriate accrual entries resulting from the above
information. Revenues and expenses for the month of December, 2001 total:
a. Revenues: $25,000; Expenses: $ -0-
b. Revenues: $30,000; Expenses: $ 1,200
c. Revenues: $25,000; Expenses: $ 1,200
d. Revenues: $30,000; Expenses: $ -0-
Supplemental Instruction
ACCT 284 Chapter 4
11. A company pays its employees every Friday. The amount paid every week is $120 per
day. September 30, 2000, is a Tuesday. The amount of salary accrued on September
30, 2000, is:
a. $0
b. $240
c. $360
d. $600
12. A company pays its employees every Friday. The amount paid every week is $600.
September 30, 2000, is a Tuesday. Assume that salaries for September were accrued on
September 30. The amount of salaries expense recognized on October 3, 2000 is:
a. $0
b. $240
c. $360
d. $600
13. A company pays its employees every Friday. The amount paid every week is $600.
September 30, 2000, is a Tuesday. Which of the following statements is true about the
entry prepared on September 30, 2000?
15. Scott's Lawn Service borrowed $10,000 from 3rd National Bank on November 1, 2001.
The loan is for a term of three years and carries a 10% rate of interest. Interest is due
at the maturity of the loan. To properly accrue interest expense in 2001, Scott should:
Supplemental Instruction