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Study Resources (Accounting)

145) Based on the partial trial balance and the partial adjusted trial balance shown below, prepare the six missing adjusting entries. The adjusting entries should be dated December 31. Account                                           Trial Balance            Adjusted Trial Balance   Debit Credit Debit Credit Accounts Receivable 101,600 107,800 Supplies 5,000 3,200 Prepaid Insurance 10,600 7,800 Accumulated Amortization 55,300 60.200 Salary Payable 1,800 Unearned Service Revenue 13,500 12,100 Service Revenue 215,900 219,500 Salary Expense 110,600 112,400 Insurance Expense 2,800 Supplies Expense 1,800 Amortization Expense 9,900 146) The following unadjusted account.
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21) A prepaid expense recorded initially as an expense is adjusted by crediting the asset account. 22) When a prepaid expense is recorded initially as an expense, the adjusting entry transfers the unused portion of the expense to the asset account. 23) When a prepaid expense is recorded initially as an asset,.
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144) Describe the posting process and how it relates to the accounting process. Give an example in your discussion. 145) Given a random list of accounts with their normal balances, prepare a trial balance for Sanders Mobile as of December 31, 2010. List the accounts in the appropriate order. Capital$75,200 Building55,000 Accounts receivable19,500 Note payable63,000 Service.
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Match the following.   A) matching objective B) recognition criteria for revenues C) amortization D) contra account E) book value F) accrual accounting G) unearned revenue H) cash-basis accounting I) accrued expense 111) An accounting system that records only transactions in which cash is received or paid 112) An accounting system that records the impact of a business event as it occurs,.
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90) Net income appears on the: A) balance sheet B) income statement C) statement of owner's equity D) income statement and the statement of owner's equity 91) The financial statement that lists the revenue and expense accounts is referred to as the: A) statement of owner's equity B) balance sheet C) cash flow statement D) income statement 92) The balance.
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11) The cost of a property, plant, and equipment asset less its accumulated amortization is referred to as historical cost. 12) The adjusting entry to record accrued salaries includes a debit to salary expense. 13) Failure to adjust for an accrued expense will overstate expenses and understate net income. 14) Failure to adjust.
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Match the following.   A) ledger B) chart of accounts C) debit D) credit E) normal balance F) journalizing G) trial balance H) posting I) account J) journal 107) The basic summary device of accounting 108) The left-hand side of an account 109) The right-hand side of an account 110) The book of accounts 111) The chronological record of an entity's transactions 112) Transferring the amount.
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147) Journalize the following transactions for Redmond Storage and prepare a trial balance dated June 30, 2010. a) Owner, Roger Redmond invested $10,000 cash into the business. b) Rented an office and paid one month's rent, $1,100. c) Purchased $450 of supplies on account. d) Performed a service on account, $1,550. e) Paid $2,500 cash.
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138) Prepare journal entries in good form for the following transactions. a)Owner, Mira Addington invested equipment valued at $4,500 and cash of $7,000 into the business. b)Purchased office supplies for cash, $550. c)Paid $700 for current month's rent of office space. d)Billed a client $2,000 for services rendered. e)Owner, Mira Addington withdrew $1,600 for personal.
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Table 3-2 The unadjusted trial balance of Danvon Collection Services at December 31, 2010 follows.  Danvon records payments for insurance, rent and supplies to the expense accounts. DebitCredit Cash $4,800 Accounts receivable10,400 Prepaid insurance Prepaid rent Office supplies Equipment16,500 Accumulated amortization $2,400 Salaries payable Interest payable Unearned service revenue 600 Note payable 8,000 Ted Danvon, capital 15,200 Ted Danvon,.
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143) Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Carson Carpets. a) Amortization on equipment, $2,500 b) Services performed but unbilled, $3,500 c) Salaries owed to employees at year end, $2,500 d) Unearned service revenue earned, $5,500 e) Supplies used during the year, $3,200 f) Prepaid rent.
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149) Given the following transactions for the The Warren Candle Company,  prepare a trial balance as of August 31, 2010. a)  Owner, Wendy Warren invested $16,000 cash and equipment with a value of $7,500 into the business. b)  Purchased supplies on account, $350. c)  Rented office space paying one month's rent, $950. d)  Performed.
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27) A work sheet is a: A) formal document shown with a company's annual report B) formal document required by the Canada Revenue Agency C) formal document required by creditors D) multicolumn document used by accountants to aid in the preparation of the financial statements 28) All of the following statements regarding a work sheet.
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149) Based on the following adjusted trial balance, prepare an income statement for Summers Company for the year ended December 31, 2010. Summers Company Adjusted Trial Balance December 31, 2010 DebitCredit Cash$10,500 Accounts receivable20,000 Supplies2,700 Office furniture10,000 Accum. amort.-office furniture$ 4,350 Salary payable760 Unearned service revenue1,140 Jody Summers, Capital12,550 Jody Summers, Withdrawals2,800 Service revenue40,060 Salary expense8,360 Rent expense2,850 Amort. expense-office furn.350 Supplies expense    1,300_______ Total$58,860$58,860 150) Based on the following.
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Table 2-1 The following is a  list of the accounts and their balances appearing in the ledger of Henry Garage Repairs as of December 31, 2010, the company's year end.  The accounts are in alphabetical order and have normal balances.              Accounts payable$ 450 Accounts receivable 1,250 Cash 400 Equipment .
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50) Failure to record an accrued revenue: A) overstates liabilities B) overstates revenue C) overstates assets D) understates assets 51) On September 1, 2010, Two Sisters Company pays $36,000 cash for six months' rent. The balance in prepaid rent on December 31, 2010, after adjustment, would be: A) $6,000 B) $24,000 C) $12,000 D) $0 52) On November 1, 2010,.
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76) Recording service revenue on account as a cash transaction will cause: A) accounts receivable to be overstated B) owner's equity to be understated C) cash to be overstated D) service revenue to be understated 77) Recording salaries paid to employees as a debit to accounts receivable and a credit to cash will cause: A) accounts.
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26) The basic summary device of accounting is the: A) ledger B) account C) debit D) credit 27) Accounts are grouped in a book called the: A) trial balance B) chart of accounts C) journal D) ledger 28) Credit is a term representing: A) the right side of an account B) an increase C) a decrease D) the left side of an account 29) All.
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30) An important fact related to accrual accounting is that: A) adjusting entries are not required B) revenue is recorded when cash is received C) expenses are recorded when incurred D) revenue is recorded when cash is received and expenses are recorded when incurred 31) The two most widely used methods of accounting are: A) financial.
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147) State the effect on net income, total assets and total liabilities if the following adjustments were not made. a) Service revenue earned but not yet collected, $2,400. b) Utilities expense incurred but not yet recorded, $1,200. c) Unearned revenue earned during the period, $5,600. d) Supplies used during the period, $1,700.e) Amortization on.
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96) The investment of cash into the business by the owner would: A) increase net income B) decrease owner's equity C) have no effect on liabilities D) decrease assets 97) The payment of an amount owed to a supplier would: A) have no effect on total assets or liabilities B) increase owner's equity and liabilities C) decrease net.
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1) Accrual accounting records the effect of every business transaction as it occurs. 2) Under accrual accounting, revenues are recorded when cash is received and expenses are recorded when incurred. 3) The recognition criteria for revenues tell accountants when to record revenue by making a journal entry and the amount of revenue.
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141) Compute the amounts indicated for each of the following independent situations. Situation       A B C D Beginning supplies balance ? $2,100 $1,500 $1,400 Payments for supplies during the year $1,400 ? $3,550 $1,950 Ending supplies balance $2,500 $4,500 ? $1,700 Supplies expense on the income statement $1,600 $1,600 $1,800 ? 142) Compute the amounts indicated for each of the following independent situations. Situation       A B C D Beginning prepaid insurance balance ? $1,300 $600 $3,300 Payments for insurance during the year $2,500 ? $4,300 $2,600 Ending prepaid insurance balance $1,400 $4,250 ? $600 Insurance expense on.
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151) Based on the following adjusted account balances, prepare a statement of owner's equity for the MacMahan Services for the year ended December 31, 2010. Service revenue$10,300 Advertising expense1,100 Salary expense6,800 Mandy MacMahan, Capital, Jan. 1, 20105,150 Insurance expense900 Supplies expense1,350 Mandy MacMahan, Withdrawals3,200 152) Lawson Delivery initially records all prepaid expenses as expenses and all unearned revenues.
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154) Lawson Delivery initially records all prepaid expenses as expenses and all unearned revenues as revenues. Given the following information, prepare the necessary adjusting entries at year end, December 31, 2010. a) On January 3, 2010, $3,500 of supplies were purchased. A count revealed $700 still on hand at December 31,.
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Table 3-4 The unadjusted trial balance of Holitzner Roof Repairs appears below as at December 31, 2010. Holizner records purchases of roof supplies to the expense account. DebitCredit Cash $5,300 Accounts receivable7,300 Roofing supplies Equipment6,000 Accumulated amortization $1,200 Salaries payable1,100 Interest payable Unearned service revenue Note payable 10,000 Carmen Holitzner, capital 6,400 Carmen Holitzner, withdrawals 600 Service revenue.
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138) On December 31, 2010, Manfred Repairs omitted the following adjusting entries: a) Accrued wages of $5,000 owed to employees b) Accrued revenue for services rendered of $5,500 Assuming the financial statements are prepared before the errors are discovered, state the effects of each error on the financial statement elements by completing the.
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60) At the end of the fiscal period, Wilf Carter Services omitted the adjusting entry for amortization on equipment. The effect of this error on the financial statements is to: A) understate liabilities B) understate owner's equity C) overstate expenses D) overstate assets 61) If an adjustment for prepaid insurance is not made at year.
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40) The concept that requires that accountants accrue revenue at the end of the accounting period for work performed but not yet billed is the: A) Cost principle B) Time-period assumption C) Recognition criteria for revenue D) Matching objective 41) The matching objective is the basis for recording: A) revenues B) expenses C) assets D) liabilities 42) Accrued expenses are.
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66) The normal balance of notes payable is a ________ because it is a(n) ________ account. A) debit, expense B) credit, revenue C) debit, asset D) credit, liability 67) The normal balance of wages payable is a ________ because it is a(n) ________ account. A) credit, liability B) credit, revenue C) credit, owner's equity D) credit, asset 68) The normal.
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80) An accrued expense adjustment has the following effect on the financial statements: A) increases expenses and increases net income B) increases expenses and decreases assets C) increases expenses and increases liabilities D) decreases expenses and increases liabilities 81) The type of account and normal balance of accumulated amortization is: A) liability; credit B) asset; debit C) contra.
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37) Which of the following appears in the balance sheet debit column of a work sheet? A) service revenue B) income summary C) owner withdrawals D) accounts payable 38) Which of the following appears in the income statement credit column of a work sheet? A) service revenue B) income summary C) owner withdrawals D) accounts receivable 39) If the unearned.
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136) State whether the account should be debited or credited and the normal balance of the account for the items listed below: Account Recorded as a debit or credit Normal balance of the account a) Decrease in Accounts payable b) Decrease in Salary expense c)  Decrease in Withdrawals d) Increase in Capital e) Increase  in Supplies f)  Decrease in Accounts receivable g).
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100) When an unearned revenue is initially recorded as a revenue, the adjusting entry: A) transfers the earned portion to a liability account B) transfers the earned portion to a revenue account C) transfers the unearned portion to a revenue account D) transfers the unearned portion to a liability account 101) When an unearned revenue.
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135) Explain the difference between cash-basis and accrual accounting. Are adjusting entries necessary in both methods? Explain. 136) Storemount Delivery reports the following transactions for May 2010: May1Purchased a two-year insurance policy for cash, $1,800. 9Performed a service on account, $800. 16Paid wages to employees, $950. 18Completed a job for a customer and collected $600.
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For the items listed below, choose the appropriate code letter to indicate whether the item is an asset, liability, owner's equity, revenue, expense or withdrawal item: AssetA LiabilityL Owner's EquityOE RevenueR ExpenseE WithdrawalW A) L B) W C) OE D) R E) A F) E 117) Accounts receivable 118) Service revenue 119) Salary Expense 120) Accounts payable 121) Office supplies 122) Cash 123) Note payable 124) Tim Brown,.
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86) An owner investment of a building, valued at $200,000,  along with a $55,000 outstanding mortgage, into an entity would: A) increase owner's equity $145,000 B) increase total assets $55,000 C) decrease liabilities $145,000 D) increase owner's equity $200,000 87) Performing services on account would: A) increase net income, decrease total assets, and decrease owner's equity B).
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151) State whether the following errors would cause the trial balance to be out of balance by placing a check mark in the appropriate column. InOut of BalanceBalance   __________  __________a) Services rendered for $200 cash were recorded twice in the journal and posted twice to the ledger. __________  __________b) Services rendered on account for.
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70) Equipment with a cost of $103,000 has a useful life of four years. Using straight-line amortization, what is the book value after three years? A) $77,250 B) $103,000 C) $25,750 D) $51,500 71) Accumulated amortization on an asset plus its book value equals: A) amortization expense for the current year B) amortization expense to be recorded.
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