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Study Resources (Accounting)

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$58,860 150) Based on the following.
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134) Given the adjusted trial balance for the Stoney Creek Resort, prepare the income statement for the year ended December 31, 2010. There were no owner investments during the year. Stoney Creek Resort Adjusted Trial Balance December 31, 2010   DebitCredit Cash$ 15,000 Accounts receivable30,000 Supplies3,200 Prepaid insurance7,500 Land40,000 Building160,000 Accum. amortization-building$ 12,000 Equipment75,000 Accum. amortization-equipment8,500 Accounts payable12,000 Salary payable2,000 Unearned service revenue25,000 Mortgage payable100,000 Douglas Reycraft, Capital60,000 Douglas.
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132) The following are the adjusting journal entries recorded by Mandarine Consulting for the year ended December 31, 2010.  Assuming that Mandarine uses reversing entries, prepare the reversing entries  on January 1, 2011. General Journal Date Accounts Debit Credit Dec. 31 Office Supplies Expense 300           Office Supplies 300 31 Insurance Expense 550           Prepaid Insurance 550 31 Amortization Expense 2,400           Accumulated Amortization 2,400 31 Unearned Service Revenue 250            Service.
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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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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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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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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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47) Given the following totals of the financial statements columns of the work sheet, determine the net income or loss for the period:           Income Statement                     Balance Sheet DebitCreditDebitCredit $9,500$7,750 $5,300 $7,050 A) $8,500 net loss B) $1,750 net income C) $4,300 net income D) $1,750 net loss 48) Accumulated amortization is found on the: A) trial balance credit.
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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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146) The steps in the accounting cycle (excluding the preparation of the work sheet) are listed below in random order. List the steps in the proper sequence, inserting the number 1 to 11. a)______Prepare a postclosing trial balance b)______Prepare an adjusted trial balance c)______Analyse transactions as they occur d)______Prepare an unadjusted trial balance e)______Compute the.
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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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Table 4-7 The following is a random list of the account balances of Baird Services for the year ended December 31, 2010.  All accounts have normal balances. Accumulated amortization - building$152 Land44 Salaries payable18 Accounts receivable66 Service Revenue280 Amortization expense - building8 Accounts payable38 Office expenses66 Mortgage payable (due 31/12/2019)112 B. Baird, drawings26 Accumulated amortization - furniture & fixtures60 Building248 Cash 20 Salaries expense60 Insurance expense40 Amortization.
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35) The major revenue of a merchandiser is ________ while the major expense(s) is (are) ________. A) sales revenue, cost of goods sold B) gross margin, operating expenses C) income from operations, cost of goods sold D) sales revenue, operating expenses 36) Inventory held by a business is a(n) ________ and when sold becomes a(n).
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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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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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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, $1,700.e) Amortization on.
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140) Identify the following accounts as temporary or permanent. TemporaryPermanent Cash____________________ Utilities expense____________________ Unearned service revenue____________________ Prepaid insurance____________________ Accounts receivable____________________ Interest expense____________________ Accumulated amort.-equip.____________________ Amortization expense-equip.____________________ Leonard Lucas, Withdrawals____________________ Leonard Lucas, Capital____________________ Salary payable____________________ Accounts payable____________________ Interest revenue____________________ Mortgage payable____________________ Prepaid rent____________________ Rent expense____________________ Equipment____________________ 141) Given the following adjusted trial balance for Whitfield Industries, prepare a postclosing trial balance dated December 31, 2010. Whitfield Industries Adjusted Trial Balance December 31, 2010 DebitCredit Cash$.
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142) Indicate where each of the following accounts would be reported in the financial statements for the year ended December 31, 2010: a) property, plant and equipment b) current asset c) current liability d) long-term liability e) revenue f) expense 1)  __________  supplies 2)  __________  unearned revenue 3)  __________  note payable (due June 30, 2011) 4)  __________  accounts receivable 5)  __________ .
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Match the following.   A) permanent account B) current ratio C) income summary D) current asset E) closing entries F) debt ratio G) temporary account H) current liability I) correcting entry J) postclosing trial balance 102) Another name for a real account 103) Entries that transfer the revenue, expense, and owner withdrawals balances to the capital account 104) Prepared as the last step in.
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144) Given the following adjusted trial balance for Leighton Industries, prepare a postclosing trial balance dated December 31, 2010. Leighton Industries Adjusted Trial Balance December 31, 2010 DebitCredit Cash$ 13,000 Accounts receivable7,000 Prepaid rent3,000 Prepaid insurance3,500 Supplies3,300 Land32,000 Building55,000 Accumulated amort.-building$ 12,000 Equipment36,000 Accumulated amort.-equipment9,000 Accounts payable8,000 Salary payable2,000 Interest payable2,500 Mortgage payable (due 12/31/2014)55,000 Leane Leighton, Capital70,500 Leane Leighton, Withdrawals25,000 Service revenue96,000 Salary expense34,000 Insurance expense1,200 Rent expense1,800 Utilities expense16,000 Advertising expense2,000 Amortization expense-building11,000 Amortization expense-equipment10,000 Supplies expense    .
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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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67) The accounts that appear on a postclosing trial balance are: A) assets, liabilities, withdrawals, and revenues B) revenues, expenses, and capital C) assets, liabilities, and expenses D) assets, liabilities, and capital 68) Revenues, expenses, and withdrawals would not appear on a(n): A) postclosing trial balance B) adjusted trial balance C) unadjusted trial balance D) work sheet 69) Which of.
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For the items listed below, choose the appropriate code letter to indicate whether the account is: TR   Temporary account with normal balance credit, closed to Income Summary TETemporary account with normal balance debit, closed to Income Summary PAPermanent Account with normal balance debit, not closed PL&EPermanent Account with normal balance credit, not closed A) TE B).
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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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125) Describe a work sheet and list the benefits to be derived from using a work sheet. Be specific. 126) Given the following work sheet with the trial balance already entered, and the adjustment information, complete the work sheet. Beatty Services Work Sheet For the Year Ended December 31, 2010 TrialAdjustmentsAdj. TrialInc.Balance AccountBalanceBal.StatementSheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 25 A/R 15 Supplies 8 Equipment 35 Accum.Amort. - Equipment 0 A/P 8 Salary Payable 0 Unearned.
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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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87) Which of the following statements is true? A) The current ratio measures the ability of a company to pay its current debts. B) The current ratio is calculated by dividing current liabilities by current assets. C) The current ratio is calculated by dividing current assets by total assets. D) The current ratio is.
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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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57) Referring to Table 4-1, calculate the total amount in the credit column of the postclosing trial balance. A) $120,900 B) $165,250 C) $173,300 D) nil 58) Using the data in Table 4-1, the balance in accumulated amortization must be: A) $8,050 B) $10,200 C) $65,250 D) nil 59) Using the data in Table 4-1, if the owner's beginning capital.
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138) Given the following adjusted account balances in random order, prepare the closing entries for Sheer Fabrics on December 31, 2010. Cash35,000 Suzie Sheer, Capital85,000 Accounts payable33,000 Service revenue84,000 Amortization expense-building 12,000 Salary expense29,000 Unearned service revenue24,000 Prepaid rent9,000 Supplies expense6,000 Note payable71,000 Land65,000 Accounts receivable32,000 Accum. amortization-building12,000 Interest revenue14,000 Interest payable3,000 Suzie Sheer, Withdrawals20,000 Rent expense15,000 Building95,000 Supplies4,000 Interest expense4,000 139) Based on the following adjusted trial balance, prepare a.
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136) Given the adjusted trial balance for the Stoney Creek Resort, prepare the statement of owner's equity for the year ended December 31, 2010. There were no owner investments during the year. Stoney Creek Resort Adjusted Trial Balance December 31, 2010 DebitCredit Cash$ 15,000 Accounts receivable30,000 Supplies3,200 Prepaid insurance7,500 Land40,000 Building160,000 Accum. amortization-building$ 12,000 Equipment75,000 Accum. amortization-equipment8,500 Accounts payable12,000 Salary payable2,000 Unearned service revenue25,000 Mortgage payable100,000 Douglas Reycraft,.
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123) Based on the following adjusted trial balance, prepare the closing entries for Dave Scott and Associates (a proprietorship) on December 31, 2010. Dave Scott and Associates    Adjusted Trial Balance       December 31, 2010 DebitCredit Cash$ 13,600 Accounts receivable2,000 Office supplies700 Prepaid insurance1,200 Equipment15,600 Accum. amort.-equipment$ 3,900 Accounts payable6,800 Salary payable1,100 Unearned service revenue800 Dave Scott, Capital22,900 Dave Scott, Withdrawals4,900 Service revenue9,250 Advertising expense1,400 Amort. expense-equipment1,300 Supplies.
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55) Day Company purchased $3,000 of merchandise on credit, terms 3/15 n/30. The entry to record payment for the merchandise within the discount period under a perpetual inventory system would include a: A) debit to inventory of $1,940 B) debit to accounts payable of $1,940 C) credit to purchase discounts of $90 D) credit.
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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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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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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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129) The following information is given for Ribbons and Bows prior to adjustments on December 31, 2010. Ribbons and Bows prepares adjusting entries annually on December 31. a) Salaries of $5,000 are paid every Friday for a five-day workweek ending on Friday. December 31, 2010, is a Thursday. b) On October 1,.
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127) Given the following work sheet with the trial balance already entered, and the adjustment information, complete the work sheet. Tree Top Trimming Work Sheet For the Year Ended December 31, 2010   TrialAdjustmentsAdj. TrialInc.Balance AccountBalanceBal.StatementSheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 55 A/R 5 Supplies 4 Equipment 40 Accum.Amort. - Equipment 5 A/P 18 Salary Payable 2 Unearned Service Revenue 22 Green, Capital 30 Green, Withdrawals 5 Service Revenue 55 Salary Expense 12 Rent Expense 6 Advertising Expense 5 Supplies Expense 0 Amort.Expense - Equipment 0 132 132   Additional information:   a) Accrued Salaries, $10. b) Supplies used, $2. c) Balance of unearned.
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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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