Ch. 3 Extra Credit - What's the Word.docx
CLUES:
1. Equipment was purchased for $30,000 on November 1. It is estimated that annual depreciation will be $4,200. How much is the adjusting entry for depreciation expense on December 31st of the same year?
2. What GAAP principle prescribes when revenue should be recognized in the accounting records?
3. The adjusting entry to record supplies used includes a debit to which account?
4. What kind of account balance would accumulated depreciation have?
5. What liability normal is used to record amounts received from customers before services are performed?
6. There was $2,000 of supplies on January 1st and an additional $6,000 of supplies was purchased during the year. A physical supplies count at year end shows $3,200 left. How much should be adjusted for supplies used?
7. A company paid $5,400 for 6 months worth of prepaid rent on December 1st. How much is the adjusting entry for rent expense on December 31st?
8. A company paid $4,000 are revenue for services performed but not yet received in cash or recorded.
KEY:
5000 - A
1000 - B
DEBIT - C
CREDIT - D
UNEARNED REVENUE - E
CONTRA ASSET - F
CREDIT - F
SERVICES PAYABLE - G
10000 - G
SUPPLIES EXPENSE - H
SALARIES & WAGES PAYABLE - J
RENT PAYABLE - K
ACCOUNTS PAYABLE - L
MATCHING PRINCIPLE - M
REVENUE RECOGNITION - N
MONETARY PRINCIPLE - O
9000 - P
5400 - Q
6000 - R
600 - S
8300 - T
450 - U
8300 - V
SERVICE REVENUE - W
ACCOUNTS RECEIVABLE - X
DEPRECIATION EXPENSE - Y
6000 - Z
