If the cost of a piece of equipment is $15,000 and accumulated depreciation amounts to $5,000, the book value of the equipment is:

Which of the following refers to the cost of an asset minus its accumulated depreciation?

Which of the following errors occur when an accountant does not record the entry to adjust accrued wages?

The balance in the Prepaid Insurance account before adjustment at the end of the year is $720, which represents twelve months' insurance purchased on December 1. The adjusting entry required for the month of December, on December 31, the end of the fiscal year, is

Every Friday, Neil pays weekly wages of $15,000 to his workers for a five-day week which ends on that day. Assuming that the fiscal period ends on a Tuesday, the adjusting entry for accrual of wages recorded by Neil is:

Which of the following entries contains both a balance sheet account and an income statement account?

The entry to record expired insurance is omitted. This error causes

If an accountant fails to make an adjusting entry at the end of a fiscal period to record expired insurance, the omission will cause

The $4,500 balance in Prepaid Insurance represents the premium paid in advance for a three-month liability insurance policy. Assuming that 2 months of premium has now expired, the adjustment would be recorded in the work sheet as a:

Coffee Co. has a $3,600 balance in Prepaid Insurance that represents the premium paid in advance for a six-month liability insurance policy. Assuming that 4 months of premium is still remaining, the adjustment would be recorded in the work sheet as a:

Assume that Sophia Co. pays its employees $250 per day and that pay day falls on Friday. Sophia Co. employees work Monday through Friday. Assume the last day of the fiscal period falls on Wednesday, the adjustment for accrued wages would be recorded in the work sheet as a:

Jackson Co. purchases equipment with a cost of $26,000 and a trade-in value of $2,000. Jackson Co. estimates that the equipment will have a useful life of 5 years. Assuming Jackson Co. records depreciation for six months using the straight-line method, the adjustment would be recorded in the work sheet as a:

Sweet Stuff Co. purchases equipment with a cost of $36,400 and a trade-in value of $4,000. Sweet Stuff Co. estimates that the equipment will have a useful life of 9 years. Assuming Sweet Stuff Co. records depreciation for one month using the straight-line method, the adjustment would be recorded in the work sheet as a:

After preparing the work sheet, adjusting entries must be recorded in the __________ and then posted to the ______________.

Squirrel Co. purchases equipment with a cost of $20,000 and a trade-in value of $2,000. Squirrel Co. estimates that the equipment will have a useful life of 5 years. Assuming Squirrel Co. records depreciation for the entire year, the adjusting entry would be recorded as

Burnet Co. has a $4,050 balance in Prepaid Insurance that represents the premium paid in advance for a nine-month liability insurance policy. Assuming that 5 months of premium is still remaining, the adjusting entry would be recorded as:

Assume that Gatesville Co. pays its employees $1,200 per day and that pay day falls on Friday. Gatesville Co. employees work Monday through Friday. Assume the last day of the fiscal period falls on Tuesday. Gatesville Co. would record an adjusting entry for the wages worked as follows

The adjusting entry to record depreciation would involve a

The adjusting entry to record the amount of prepaid insurance used or expired would involve a

The adjusting entry to record the accrual of wages would involve a

Sunny Day Company has $740 of supplies reported on its unadjusted trial balance as of July 31. During the month of July Sunny Day Company used $325 worth of supplies. What is the entry to adjust supplies?

As equipment is depreciated, its book value increases and its accumulated depreciation increases.

Because adjusting entries are recorded on a work sheet, they do not need to be journalized or posted.

Failure to record the adjusting entry for depreciation results in assets and owner's equity being overstated on the balance sheet.

In recording the adjusting entry for accrued wages, all the accounts involved are decreased.

If the adjustment for accrued wages is omitted, liabilities and expenses will be overstated.

Failure to record the adjusting entry for accrued wages results in the current year's net income being overstated.

Failure to record the adjusting entry for depreciation will overstate assets on the balance sheet.