POST ACC111 UNIT 4 CH 4 SELF QUIZ AND QUIZ

• Question 1

2 out of 2 points

Retained earnings for the ABC Company as of January 1, 200X was $800. During the year the company earned revenue of $5,000, had expenses of $3,200 and paid a cash dividend of $500.The income statement for the year ending December 31, 200X would show net income of:

$2,300

$2,100

$800

$1,800

• Question 2

2 out of 2 points

The balance in Prepaid insurance is $ 2,500 before any adjustment. $1,000 worth of the insurance has expired. The adjusting journal entry should include which of the following?

Debit to Prepaid insurance for $ 1,000.

Debit to Insurance expense for $ 1,000.

Credit to Insurance expense for $ 1,000.

Debit to Insurance expense for $ 1,500.

• Question 3

2 out of 2 points

On January 1, 200X the Post Company started the year with a balance of $1,000 in the supplies account. During the year the company purchased supplies for $2,000. On December 31, 200X there was $1,200 of supplies on hand. What adjusting entry would be made on December 31, 200X?

Debit Supplies $1,800; Credit Cash $1,800

Debit Supply Expense $2,000; Credit cash $2,000

Debit Supply Expense $1,800; Credit Supplies $1,800

Debit Supply Expense $1,200; Credit Supplies $1,200

• Question 4

2 out of 2 points

Payment of a dividend will:

Decrease net income.

Increase net income.

Decrease retained earnings.

Increase retained earnings.

• Question 5

2 out of 2 points

Central Company purchased equipment on January 1, 200X for $12,000. The equipment has a useful life of six years. What adjusting entry would be made for 200X to record depreciation expense?

Debit depreciation expense $2,000; credit cash $2,000.

Debit depreciation expense $12,000; credit cash $12,000.

Debit depreciation expense $2,000; credit equipment $2,000.

• Question 1

0 out of 0 points

For which of the following accounts is the normal balance a debit balance?

Retained earnings.

Accounts payable.

Prepaid insurance.

Unearned revenue.

• Question 2

0 out of 0 points

Retained earnings for the ABC Company as of January 1, 200X was $1,800. During the year the company earned revenue of $2,000, had expenses of $1,200 and paid a cash dividend of $500.The income statement for the year ending December 31, 200X would show net income of:

$300

$2,100

$800

$3,100

• Question 3

0 out of 0 points

Assume the balance in Prepaid Insurance is $ 2,500 but it should be $ 1,500. The adjusting journal entry should include which of the following?

Debit to Prepaid insurance for $ 1,000.

Debit to Insurance expense for $ 1,000.

Credit to Insurance expense for $ 1,000.

Credit to Insurance expense for $ 1,500.

• Question 4

0 out of 0 points

Assume a company receives a bill for $ 10,000 for advertising done during the current year. If this bill is not yet recorded at the end of the year, what will the adjusting journal entry include?

Debit to Advertising expense of $ 10,000.

Debit to Accrued liabilities of $ 10,000.

Credit to Advertising expense of $ 10,000.

Credit to Cash of $ 10,000.

• Question 5

0 out of 0 points

On January 1, 200X the Post Company started the year with a balance of $800 in the supplies account. During the year the company purchased supplies for $600. On December 31, 200X there was $200 of supplies on hand. What adjusting entry would be made on December 31, 200X?

Debit Supplies $600; Credit Cash $600

Debit Supply Expense $600; Credit Cash $600

Debit Supply Expense $1,200; Credit Supplies $1,200

Debit Supply Expense $200; Credit Supplies $200

Debit Supply expense $1,200; Credit cash $1,200

• Question 6

0 out of 0 points

Payment of a dividend will:

Decrease net income.

Increase net income.

Decrease retained earnings.

Increase retained earnings.

• Question 7

0 out of 0 points

Central Company has sales of $10,000 and expenses of $4,000. Which of the following is the correct closing entry?

Debit retained earnings, debit expenses and credit sales.

Credit retained earnings, credit expenses and debit sales.

Debit expenses and credit sales.

Credit retained earnings, debit expenses and credit sales.

• Question 8

0 out of 0 points

In regard to the Prepaid Insurance Account:

A debit entry will increase this account; a credit entry will decrease this account.

A credit entry will increase this account; a debit entry will decrease this account.

A debit entry can either increase or decrease this account.

A credit entry can either increase or decrease this account.

• Question 9

0 out of 0 points

In regard to the account Salary Payable:

A debit entry will increase this account; a credit entry will decrease this account.

A credit entry will increase this account; a debit entry will decrease this account.

A debit entry can either increase or decrease this account.

A credit entry can either increase or decrease this account.