On July 1, 2013, a firm purchased a 1-year insurance policy for $6,300 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2013, is

$6,300.
$3,150.
$3,675.
$2,100.
On January 2, 2014, a firm purchased equipment for $12,500. Depreciation expense for the year ending December 31, 2014, given the straight-line method, a 4-year useful life, and a salvage value of $2,300, is
$3,125.
$2,550.
$2,300.
$1,725.
On November 1, 2013, a firm accepted a 4-month, 10 percent note for $780 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2013, is
$65.
$78.
$26.
$13.
If an account has a debit balance of $720 in the Trial Balance section of a worksheet and there is a credit entry of $240 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a
$480 debit.
$960 credit.
$960 debit.
$480 credit.
If an account has a debit balance of $720 in the Trial Balance section of a worksheet and there is a debit entry of $240 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a
$960 credit.
$480 debit.
$960 debit.
$480 credit.
Hugh Morris Company pays weekly wages of $17,500 every Friday for a five day week ending on that day. If the last day of the year is on Wednesday, the adjusting entry to record the accrued wages is:
debit Wages Expense $10,500; credit Cash $10,500
debit Wages Expense $10,500; credit Drawing $10,500
debit Wages Expense $7,000; credit Cash $7,000
debit Wages Expense $10,500; credit Wages Payable $10,500
Rose Bush Nursery purchased a delivery truck for $32,300. The truck is expected to have a useful life of 5 years and a residual value of $1,100. If the truck was purchased on June 1, 2013, what is the amount of depreciation expense for the truck for the year ended December 31, 2013? The company uses the straight-line method of depreciation.
$1,100
$3,640
$3,120
$6,240
On October 1, 2013, a firm accepted a 4-month, 9% note for $44,000 from a customer with an overdue account balance. The accrued interest recorded for this note on December 31, 2013, is
$3,960.00
$330.00
$990.00
No accrual is necessary
Prepaid Advertising has a debit balance in the Trial Balance section of the worksheet of $3,500 and a credit entry of $1,500 in the adjustments section of the worksheet, the balance of Prepaid Advertising in the Adjusted Trial Balance section of the worksheet is a
$3,500 debit
$1,500 debit
$2,000 debit
$2,000 credit
Abe & Anna Split Ice Cream Parlour paid $2,150 cash for a 5-month advertising contract on September 30, 2013. The amount of advertising expense reported on the Income Statement for the year ending December 31, 2013, for this advertising contract is
$1,290
$1,720
$430
$2,150
The beginning capital balance shown on a statement of owner's equity is $54,000. Net income for the period is $16,000. The owner withdrew $20,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is
$50,000.
$70,000.
$90,000.
$58,000.
The beginning capital balance shown on a statement of owner's equity is $86,000. Net income for the period is $36,000. The owner withdrew $44,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is
$78,000.
$122,000.
$166,000.
$94,000
The beginning capital balance shown on a statement of owner's equity is $290,000. Net income for the period is $69,000. The owner withdrew $34,500 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is
$290,000.
$359,000.
$393,500.
$324,500
A company reported gross profit of $92,000, total operating expenses of $49,000 and interest income of $3,700. What is the income from operations?
$39,300
$46,700
$43,000
$35,600
At the end of the year Stan Still Stationery Store had the following balances: Sales $590,000; Sales Discounts $2,540; Sales Returns and Allowances $14,600; Sales Salaries Expense $65,000. The Net Sales for the year are:
$575,400
$507,860
$572,860
$587,460

To find the answer to each question, we need to use the given information and apply the relevant accounting concepts. Let's go through each question step by step:

1. The insurance expense associated with the policy can be calculated by dividing the premium paid by the number of months covered. In this case, the policy covers 12 months, so the expense for the year ending December 31, 2013, is $6,300.

Answer: $6,300.

2. To calculate the depreciation expense using the straight-line method, subtract the salvage value from the cost of the equipment and then divide it by the useful life. In this case, the calculation would be ($12,500 - $2,300) / 4 = $2,550.

Answer: $2,550.

3. The accrued interest can be calculated by multiplying the principal amount of the note by the interest rate and then dividing it by the number of months in the year. In this case, the calculation would be $780 * 0.10 * (2/12) = $13.

Answer: $13.

4. To determine the adjusted balance, we need to subtract the credit entry from the debit balance. In this case, $720 - $240 = $480.

Answer: $480 debit.

5. Similar to question 4, subtract the debit entry from the debit balance to get the adjusted balance. In this case, $720 + $240 = $960.

Answer: $960 debit.

6. The accrued wages adjustment is needed for the days the wages accrue beyond the last day of the year. Since the last day of the year is on a Wednesday and the wages are paid on Fridays, we need to adjust for two days. Multiply the daily wage expense ($17,500 / 5) by the number of days, which is $7,000.

Answer: debit Wages Expense $7,000; credit Cash $7,000.

7. To calculate the annual depreciation expense using the straight-line method, divide the cost of the truck minus the salvage value by the useful life in years. In this case, it would be ($32,300 - $1,100) / 5 = $6,240.

Answer: $6,240.

8. The accrued interest for the note can be calculated by multiplying the principal amount by the interest rate and then dividing by the number of months in the year. In this case, the calculation would be $44,000 * 0.09 * (2/12) = $660.

Answer: $660.

9. To determine the balance of Prepaid Advertising in the Adjusted Trial Balance section, we need to subtract the credit entry from the debit balance. In this case, $3,500 - $1,500 = $2,000.

Answer: $2,000 debit.

10. The amount of advertising expense reported on the Income Statement can be calculated by dividing the total cost of the advertising contract by the number of months it covers and then multiplying it by the number of months in the year. In this case, it would be ($2,150 / 5) * 12 = $1,290.

Answer: $1,290.

11. The owner's capital balance at the end of the period can be calculated by adding the beginning capital balance, net income, and deducting the owner's withdrawals. In this case, it would be $54,000 + $16,000 - $20,000 = $50,000.

Answer: $50,000.

12. Similar to question 11, the owner's capital balance at the end of the period is calculated by adding the beginning capital balance, net income, and deducting the owner's withdrawals. In this case, it would be $86,000 + $36,000 - $44,000 = $78,000.

Answer: $78,000.

13. Following the same process as before, the owner's capital balance at the end of the period is calculated as $290,000 + $69,000 - $34,500 = $324,500.

Answer: $324,500.

14. The income from operations is calculated by subtracting the total operating expenses from the gross profit. In this case, it would be $92,000 - $49,000 = $43,000.

Answer: $43,000.

15. To calculate the Net Sales, subtract the amount of Sales Discounts and Sales Returns and Allowances from the Sales. In this case, it would be $590,000 - ($2,540 + $14,600) = $572,860.

Answer: $572,860.

I hope this helps!