Name: ____________________________________________________
Test Date: Thursday, 4/7
Chapter 15 Study Guide
In order to adequately prepare for the Ch. 15 Test, you should read the textbook (MindTap, sections
1,2,3), review all Work Together and On Your Own problems, review the PowerPoint packets, and be able
to respond to or complete the components on this hand out. Remember, this handout is simply a guide to
help you prepare for the test.
Define the following key terms:
 Unadjusted Trial Balance 
Beginning Inventory –

Ending Inventory –

Accrued Revenue –

Accrued Interest Income –

Current Assets –

Plant Assets –

Depreciation –

Depreciation Expense –

Salvage Value –

Useful Life –

Straight-line method of depreciation –

Accumulated depreciation –

Book Value of a Plant Asset –
Read and respond to the following short answer questions:
1. What adjusting entry is unique to a corporation?
2. What four questions are used to analyze the adjustment of an account?
3. Which accounts are used for the following adjustments:
a. Office Supplies
b. Store Supplies
c. Prepaid Insurance
d. Merchandise Inventory
e. Interest Receivable
f. Accumulated Depreciation
4. How often is revenue earned on an outstanding note receivable?
5. What are two categories of assets?
6. What three factors are used to calculate a plant asset’s annual depreciation expense?
a. Write the corresponding formula in the space below.
7. List and explain the two factors that affect the useful life of a plant asset.
You should also be able to….
Journalize the following:
 Adjustments to merchandise inventory
 Adjustments to interest receivable
 Adjustments to supplies
 Adjustments to prepaid insurance
 Adjustments to depreciation
Calculate the following:
 Annual Depreciation Expense
 Accumulated Depreciation
 Book Value of an Asset