Question

If Sven Company pays employees each Wednesday for the weekly pay period ending the previous Friday, and an entry is made each Friday to accrue the payroll for that week, the journal entry to record on payday (Wednesday) would involve a debit to:

Question 8 options:

	a) Wage Expense.
	b) Wages Payable.
	c) Cash.
	d) Cash Expense.
	e) None of these.

On August 1, supplies were purchased. Supplies were debited and Accounts Payable credited for $2,500. $700 of these supplies were on hand at the end of August. The entry to adjust the supplies account as of August 31:

Question 15 options:

	a) requires a debit to Supplies for $700.
	b) requires a credit to Supplies for $1,800.
	c) requires a debit to Supplies for $2,200.
	d) requires a credit to Accounts Payable for $1,500.
	e) None of these.

Which of the following would not require an adjusting journal entry at the end of an accounting period?

Question 19 options:

	a) Multiperiod costs that must be split among two or more accounting periods.
	b) Expenses incurred in a given period but not as yet recorded in the accounts.
	c) Cash received for services provided.
	d) Revenues earned in a given period but not as yet recorded in the accounts.
	e) None of these.

Which of the following accounts will not appear in a post-closing trial balance?

Question 20 options:

	a) Cash.
	b) Accumulated Depreciation.
	c) Retained Earnings.
	d) Utility Expense
	e) None of these.

Answer 1

Q.8	Correct Option B: Wages Payable
	When wages are accrued the following entry is made
	Accounts Title and Explanation	Debit	Credit
Friday	Wages Expense	xxx
	Wages Payable		xxx
	(To record wages expense)
Wednesday	Wages Payable	xxx
	Cash		xxx
	(To record wages payment)
Q.15	Correct Option b) requires a credit to Supplies for $1,800.
	Entry would be following
	Accounts Title and Explanation	Debit	Credit
	Supplies Expense	1800
	Supplies		1800
	(To record supplies expense)
Q.19	Correct Option c) Cash received for services provided.
	Reason: Cash received is recorded as and when received not particularly in year end.
Q.20	Correct Option d) Utility Expense
	In post closing trial balance, income statement accounts will not appear because income statements accounts are closed to income summary account.