Question

Which of the following is an example of a current liability Accounts Payable b. Cash Equipment d Note payable due in 5 years 15 business pays weekly salaries of $5.000 on Friday for a five-day week ending on the wyThe adjusting entry necessary at the end of the fiscal period ending on a Tuesday Debit Salaries and Wages Payable, $2.000; Credit Cash, $2.000 Debit Salaries and Wages Expense $5,000 Credit Cash, $5.000 Debit Salaries and Wages Expense S2000 Cred Salaries and Wages Payable $2.000 a. Debit Salaries and Wages Expense 3000 Credit Salaries and Wages Payable $3,000 16. Closing entries are prepared a. At the end of every month b. At the end of every quarter c. At the end of every year d. As often as you think they will help you manage your business The entry to record interest owed on a note (this is NOT the original entry recording the debt) would include: a CR to Cash b DR to Cash DR to Interest Expense d DR to Interest Payable C 18 Bill's Consulting Company purchased supplies costing $10,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $2,000 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be a. Debit Supplies Expense, $10,000; Credit Supplies, $10,000. b. Debit Supplies, $10,000; Credit Supplies Expense, $10,000 C. Debit Supplies Expense, $8,000; Credit Supplies, $8,000. d. Debit Supplies, $8,000; Credit Supplies Expense, $8,000. 19. Bob's Bagel Store has a year end of Sept. 30, 2020. This year end would be considered a. a calendar year end b. a fiscal year end c.an interim year end 20. Laura's Law Firm purchased a computer for $5,000 on October 1. Annual depreciation on the computer will be $1,200. If financial statements are prepared on December 31, the company should make the following adjusting entry: a. Debit Depreciation Expense, $1,200: Credit Accumulated Depreciation, $1,200. b. Debit Depreciation Expense, $100; Credit Accumulated Depreciation, $100. C. Debit Depreciation Expense, $300; Credit Accumulated Depreciation, $300. d. Debit Office Equipment, $5,000; Credit Accumulated Depreciation, $5,000.

Answer 1

14.Answer: a accounts payable

Explanation: cash is current asset, equipment is fixed asset, Notes payable after 5 years is long term liability, therefore option a is correct choice.

15. Answer c

Explanation: since the fiscal period ends on tuesda, salary for two days become due(5,000/5)*2 amounting to 2,000. Therefore, the closing entry would be booked by accounting an expense for two days and creating a liability for the same by debiting salary expense by 2,000 and credit salaries payble by 2,000.

16. Answer d

Explanation: Usually closing entries are posted to match the cut off. They can be posted at month end, quarter end, year end depending upon the specific scenario. Therefore, the correct choice is d.

17. C

The entry to record interest payable would include debiting interest expense as expense is debited and interest payble being liability would be credited. Therefore, all other choices are incorrect.