Multiple Choice Quiz

Please answer all questions

Elite Property Management adjusts its books each month but closes its books at the end of the year. The trial balance at January 31 before adjustments is as follows: <a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0072396881/23699/mc04.jpg','popWin', 'width=404,height=244,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (32.0K)</a>

1		Refer to Elite's unadjusted trial balance above to answer this question. According to property management contracts, $2,400 of the Unearned Management Fees has been earned in February. The amount of Management Fees Earned (revenue) to be reported in the January income statement is:
			A)	$2,400.
			B)	$15,100.
			C)	$19,900.
			D)	$19,000.
2		Refer to Elite's unadjusted trial balance above to answer this question. On December 1 of last year, Elite paid in advance for six months' advertising in the local newspaper. The necessary adjusting entry at January 31 includes which of the following?
			A)	A credit to Prepaid Advertising for $360.
			B)	A credit to Prepaid Advertising for $1,500.
			C)	A debit to Advertising Expense for $300.
			D)	A debit to Prepaid Advertising for $1,440.
3		Refer to Elite's unadjusted trial balance above to answer this question. At January 31, the amount of supplies on hand is $410. What amount is reported in the January income statement for supplies expense?
			A)	$410.
			B)	$1,160.
			C)	$750.
			D)	$340.
4		Refer to Elite's unadjusted trial balance above to answer this question. The equipment had an estimated useful life of six years. Compute the book value of the equipment at January 31, after the proper January adjustment is recorded.
			A)	$9,200.
			B)	$14,400.
			C)	$14,200.
			D)	$7,000.
5		Refer to Elite's unadjusted trial balance above to answer this question. Employees are owed $350 for services since the last payday in January, to be paid the first week in February. The amount to be reported in the January income statement for salaries expense is:
			A)	$350.
			B)	$6,750.
			C)	$6,050.
			D)	$6,400.