Chapter 3, Accrual Basis Of Accounting Video Solutions, Financial Accounting for Undergraduates

Problem 1

Which of the following is an example of an adjusting entry?
a. Recording the purchase of supplies on account
b. Recording depreciation expense on a truck
c. Recording the billing of customers for services rendered
d. Recording the payment of wages to employees

James Kiss

Numerade Educator

02:44

Problem 2

An adjusting entry to record utilities used during a month for which no bill has yet been received is an example of
a. Allocating assets to expense to reflect the actual operating expenses incurred during the accounting period
b. Allocating revenues received in advance to revenue to reflect actual revenues earned during the accounting period
c. Accruing expenses to reflect expenses incurred during the accounting period that are not yet paid or recorded
d. Accruing revenues to reflect revenues earned during the accounting period that are not yet received or recorded

Oluwadamilola Ameobi

Numerade Educator

02:01

Problem 3

Which of the following is not an example of a closing entry?
a. Close each revenue account to the Retained Earnings account
b. Close each expense account to the Retained Earnings account
c. Close the Dividends account to the Retained Earnings account
d. Close Unearned Revenue to Retained Earnings

Oluwadamilola Ameobi

Numerade Educator

04:45

Problem 4

Which of the following transactions does not affect total assets, total liabilities, or total stockholders' equity on the balance sheet?
a. Purchasing $\$ 500$ supplies on account
b. Paying a $\$ 3,000$ note payable
c. Collecting $\$ 4,000$ from customers on account
d. Payment of an $\$ 800$ dividend

Oluwadamilola Ameobi

Numerade Educator

02:01

Problem 5

The beginning and ending balances of retained earnings for the year were $\$ 30,000$ and $\$ 41,000$, respectively. If yearly dividends totaled $\$ 3,000$, what was the net income or net loss for the year?
a. $\$ 8,000$ net loss
b. $\$ 14,000$ net income
c. $\$ 2,000$ net income
d. $\quad \$ 8,000$ net income

Oluwadamilola Ameobi

Numerade Educator

05:04

Problem 6

The ending balance of the Accounts Receivable account was $\$ 7,800$. Services billed to customers for the period were $\$ 21,500$, and collections on account from customers were $\$ 23,600$. What was the beginning balance of Accounts Receivable?
a. $\$ 33,500$
c. $\$ 9,900$
b. $\quad \$ 14,100$
d. $\$ 33,100$

Puneet Prajapati

Numerade Educator

03:28

Problem 7

Kelly Corporation received an advanced payment of $\$ 30,000$ in 2018 from Rufus Company for consulting services. Kelly performed half of the consulting in 2018 and the remainder in $2019 .$
Kelly reports using the accrual basis of accounting. How much revenue from this consulting project will Kelly report in 2018 ?
a. $\$ 20,000$
c. $\$ 0$
b. $\quad \$ 10,000$
d. $\$ 15,000$

Angelo Rendina

Numerade Educator