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Introduction to Adjusting Journal Entries and Prepaid Expenses Solutions Library

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18 solutions

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. If Robert paid for 6 months of rent in advance on 7/1/16 for $4,800 ($800 per month).  What is the journal entry required on 12/31/16? a. Debit Re...

Solved • Sep 20, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. If Robert paid for 6 months of rent in advance on 7/1/16 for $4,800 ($800 per month).  What is the journal entry required on 7/1/16? a. Debit Rent...

Solved • Sep 20, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Paying rent in advance for one full year would include a a. Debit to cash and a credit to accounts receivable b. Debit to supplies and a credit t...

Solved • Sep 20, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. If the accountant forgets to adjust the Prepaid Expenses account, there will be: A) an understatement of net income. B) an overstatement of net i...

Solved • Aug 2, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. A deferred expense would be shown on the balance sheet as: A) A receivable B) A payable C) A prepaid expense D) An unearned expense

Solved • Aug 2, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. In January, Langhurst Company paid $9,000 for utilities, repairs, and maintenance of delivery vehicles. Which of the following is the correct journ...

Solved • Aug 2, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. At the beginning of January, Langhurst Company paid $6,000 for insurance for the next four months beginning January 1, $3,000 for advertising to be...

Solved • Aug 2, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Paying rent in advance for one full year would include a a. Debit to cash and a credit to accounts receivable b. Debit to supplies and a credit t...

Solved • Jul 27, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Jorge opened his business on 6/1/15 and paid for a 12 month insurance policy in advance, for $2,400. Assuming no adjusting entries have been made, ...

Solved • Jul 26, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Adjusting entries: A) Usually are recorded on the first day of the month B) Always decrease expenses and decrease revenues C) Will usually affec...

Solved • Jul 19, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. If the prepaid expenses are not adjusted, assets on the balance sheet a) will be overstated. b) will be understated. c) will not be affected. d...

Solved • Jul 11, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Making insurance payments in advance is an example of: a) An accrued revenue. b) An accrued expense. c) An unearned revenue. d) A prepaid expen...

Solved • Jul 11, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. On July 1, 2011, Waterloo Company paid the premium in advance of $2,400 for a one-year fire insurance policy on an administrative building. At that...

Solved • Jul 7, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Prepaid insurance shows a beginning balance of $900 and an ending balance of $600. During the year, prepaid insurance was debited for $2,500. What ...

Solved • Jul 7, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. On September 1, 20X4, Four Brothers Company pays $48,000 cash for six months rent. The balance in prepaid rent on December 31, 20X4, after adjustme...

Solved • Jul 6, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Accruals occur when cash flows: A) Occur before expense recognition. B) Occur after revenue or expense recognition. C) Are uncertain. D) May be...

Solved • Jul 6, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. The adjusting entry to recognize the portion of Prepaid Insurance used up during the period would include: a) a credit to Cash b) a credit to Insu...

Solved • Jul 6, 2017

Introduction to Adjusting Journal Entries and Prepaid Expenses

Q. Up In Smoke purchased a two-year fire coverage policy on August 1, Year 3, and charged the entire $4,200 premium to Insurance Expense. When prepari...

Solved • Jul 5, 2017