Supplies Mastery
When supplies are first purchased, they are recorded as this type of account.
asset
Unlike supplies, which are adjusted based on usage, prepaid insurance adjustments are based on this.
Time
This is the specific federal corporate tax rate applied in all the lesson's examples.
21%
This type of accounting records revenue when earned and expenses when incurred, regardless of when cash changes hands.
Accrual accounting
What color are Mickey Mouse's shorts?
red
This is the account you credit when recording the adjusting entry for supplies used.
supplies
This is the account you debit when recording the expiration of an insurance policy.
Insurance Expense
This is the liability account that is credited when recording the adjusting entry for corporate taxes.
Federal Income Tax Payable
This fundamental principle states that expenses must be recorded in the same period as the revenue they helped generate.
matching principle
What Company created the Xbox
microsoft
This is the specific formula used to determine the dollar amount of supplies used during a period.
Beginning Balance minus Ending Physical Count
For an $18,000, 12-month policy, this is the calculated monthly insurance expense.
$1,500
According to accrual accounting, tax expense is recorded when income is this, rather than when the cash is actually paid.
Earned
This is the total decrease to net income if a company has a $5,800 supplies adjustment, an $18,000 insurance adjustment, and a $31,500 tax adjustment.
$55,300
What is the currency of Argentena
peso
If the Supplies account shows 5,600 and a physical count shows 1,100 on hand, this is the amount of the adjusting entry.
$4,500
If 9 months of a $24,000, 12-month policy have expired, this is the total amount that must be moved to Insurance Expense.
$18,000
If a company has $120,000 in Income Before Tax, this is the total tax expense they must record at a 21% rate.
$25,200
If a trial balance shows $12,000 in Prepaid Insurance for a 6-month policy and 4 months have expired, this is the amount of the adjustment.
8000
Who sings "Am I wrong"
am i wrong
If an accountant forgets to record the supplies adjustment, these two items on the financial statements will be overstated
Assets and Net Income
This is the reason why the Cash account is never used in a year-end insurance adjusting entry.
Because the cash was already paid earlier when the policy was purchase
Even though it is an adjusting entry that increases expenses, the Federal Income Tax adjustment does not reduce this specific asset immediately.
Cash
If the Income Before Tax is $60,000, this is the dollar amount of the adjustment for Federal Income Tax.
12600
How much does Eli Manning weigh
218 lbs