ACC 291T Week 4 Apply: Connect® Exercise

Review the Knowledge Check in preparation for this assignment.

Complete the Week 4 Exercise in Connect®.

Note: You have only one attempt available to complete this assignment.

Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

Identify the statement below that is true regarding the Allowance for Doubtful Accounts account.

Multiple Choice

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The account has a normal credit balance and is reported on the balance sheet.

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The account has a normal debit balance and is reported on the balance sheet.

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The account has a normal credit balance and is reported on the income statement.

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The account has a normal debit balance and is reported on the income statement.

On June 1, 2019, Mighty Fast Flooring issued a 10-month, 9 percent note for $5,000. The note was recorded in the Notes Payable-Trade account. The adjusting entry on December 31 to record the interest accrued (owed) on the note is:

Multiple Choice

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a debit to Interest Expense for $450.00 and a credit to Interest Payable for $450.00.

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a debit to Interest Income for $450.00 and a credit to Interest Receivable for $450.00.

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a debit to Interest Expense for $262.50 and a credit to Interest Payable for $262.50.

Correct

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a debit to Interest Expense for $262.50 and a credit to Notes Payable-Trade for $262.50.

On January 1, 2019, a firm purchased machinery for $19,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 8-year useful life, and a salvage value of $2,000, is

Multiple Choice

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$2,125.

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$2,000.

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$2,375.

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$2,400.

Which of the following statements is correct?

Multiple Choice

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Income that has been earned but not yet received is called accrued income.

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Unearned Subscription Income is a liability account.

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Under the accrual basis of accounting, revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received.

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All of these statements are correct.

On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,200 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2019, is

Multiple Choice

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$120.

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$60.

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$20.

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$10.

Hugh Morris Company pays weekly wages of $15,000 every Friday for a five day week ending on that day. If the last day of the year is on Tuesday, the adjusting entry to record the accrued wages is:

Multiple Choice

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debit Wages Expense $6,000; credit Wages Payable $6,000

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debit Wages Expense $15,000; credit Cash $15,000

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debit Wages Expense $9,000; credit Wages Payable $9,000

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debit Wages Expense $6,000; credit Drawing $6,000

Robin Banks, Inc. owns an armored truck which was purchased for $80,000. The Accumulated Depreci¬ation on the truck is $55,000. The book value of the armored truck is

Multiple Choice

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$25,000.

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$80,000.

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$55,000.

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$135,000.

The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. The company uses the periodic inventory system. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to remove the old merchandise inventory balance would be:

Multiple Choice

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a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.

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a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.

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a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.

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a debit to Income Summary of $35,000 and a credit to Merchandise Inventory for $35,000.

Stan Still Stationery Store’s employees are paid every Friday for a five day work week and are paid a total of $1,625 per day. If December 31, 2019, is on a Tuesday, the amount of the adjusting entry for accrued wages is:

Multiple Choice

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$1,625

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$4,875

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$3,250

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$8,125

Depreciation Expense has a debit balance in the Trial Balance section of the worksheet of $2,200 and a debit of $200 in the adjustments section of the worksheet, the balance of Depreciation Expense in the Adjusted Trial Balance section of the worksheet is a

Multiple Choice

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$2,400 credit.

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$200 debit.

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$2,000 debit.

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$2,400 debit.