1/15
$1,000
$2,000
$12,000
$14,000
2/15
On 1 November 2021, five months of insurance amounting to $12,500 were paid for the period from 1 November 2021 to 31 March 2022.The amount was debited to the insurance expense account. How much was the insurance expense incurred for the year ended 31 December 2021 if there was no balance in the insurance expense account?
$2,500
$5,000
$7,500
$12,500
3/15
On 30 November, Cheetah Transport Limited repaired 8 buses at a repair cost of $750 per bus. A cheque of $5,250 was issued to the workshop on 31 December, its financial year end. State whether the repair expense is a prepayment or payable and the amount to be recorded in the Balance Sheet.
$750 prepaid repair expenses
$750 repair expenses payable
$6,000 prepaid repair expenses
$6,000 repair expenses payable
4/15
The financial year of Sunset Paradise is from 1 April to 31 March. On 1 June 2021, a cheque of $33,000 was issued to the landlord for 11 months' rent from 1 June 2021 to 30 April 2022. What is the amount of prepaid or payable rental expense as at 31 March 2022?
$3,000 prepaid rental expense
$3,000 rental expense payable
$6,000 prepaid rental expense
$6,000 rental expense payable
5/15
On January 31, 2021, the balance in Aislers Inc.’s supplies account was $750. During February, Aislers purchased supplies of $900 and used supplies of $1,125. At the end of February, the balance in the supplies account should be
$525 debit
$975 debit
$525 credit.
$975 credit.
6/15
On July 7, 2021, Hidden Comera Enterprises performed cash services of $1,700. The entry to record this transaction would include
a credit to Trade Receivable of $1,700
a debit to Cash in hand of $1,700.
a credit to Trade Payable of $1,700.
7/15
The following information relates to the Electricity Account.
1 Jan 2021 31 Dec 2021
Electricity
Expense $100 $50
Payable
During the year ended 31 December 2021, electricity paid by cheque was $580. What amount would be transferred to Income Summary for the year ended 31 December 2021?
$730
$580
$630
8/15
The information below relates to insurance expense:
Statement of Financial Position as at 30 June 2022 | Current liability $500 |
Income Summary for year ended 30 June 2022 | $4,000 The insurance paid of this year is... |
$500
$3,500
$4,000
$4,500
9/15
lf expense payable is not taken into account at the end of the accounting period,
liability will be overstated
asset will be understated
profit will be overstated
profit will be understated
10/15
The account, rental expense payable, will appear in the following debit columns of the:
Adjusted trial balance
All of the above
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