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Study Resources (Accounting)

6) Asset and liability accounts are closed to the Income summary account.  7) Beginning balance in Retained earnings is $10,000.  Revenues are $200,000.  Expenses are $120,000.  Dividends are $4,000. The ending balance in Retained earnings is $86,000. 8) Beginning balance in Retained earnings is $10,000.  Revenues are $200,000.  Expenses are $120,000. .
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21) Please refer to the partially completed worksheet below: How much was the Net income? A) $42,000 B) $13,600 C) $22,020 D) $28,400 22) Please refer to the partially completed worksheet below: How much was the net income? A) $42,000 B) $13,600 C) $22,020 D) $28,400 23) Please refer to the following partially completed worksheet: How much was the Net income.
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64) A business renders services to its customer and collects $900 cash.  Please provide the journal entry (debits first, credits second.) 65) A business renders services to its customer for $350 on account.  Please provide the journal entry (debits first, credits second.) 66) A business pays salary expense of $4,000 in cash. .
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5) In accounting, the matching principle means to match which of the following? A) Revenues to liabilities B) Expenses to assets C) Expenses to revenues D) Expenses to liabilities 6) The matching principle means which of the following? A) Revenues are subtracted from expenses. B) Expenses are subtracted from revenues. C) Assets are subtracted from liabilities. D) Liabilities are.
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11) What is the first step in the accounting cycle for a merchandising company? A) The company sells inventory to customers, creating accounts receivable. B) The company collects cash. C) The company buys inventory. D) The company delivers inventory to customers. 12) Under a perpetual inventory system, which of the following would NOT be required? A).
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10) Below is the adjusted trial balance for Parsons Repair Service.  Please prepare the balance sheet at December 31, 2012. Parsons Repair Service Adjusted Trial Balance December 31, 2012 Accounts Debit Credit Cash $1,600 Accounts receivable 2,400 Prepaid rent 800 Supplies 200 Building 14,000 Accumulated depreciation $2,000 Accounts payable 4,200 Salary payable 1,000 Unearned revenue 800 Common stock 1,000 Retained earnings 5,000 Dividends 1,000 Service revenue 50,000 Salary expense 21,000 Rent expense 14,000 Depreciation expense 8,500 Supplies expense 500 Total $64,000 $64,000 Learning Objective 3-7 1) Pattie's Event Planning Service records prepaid expenses as.
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8) Below is the adjusted trial balance for Parsons Repair Service.  Please prepare the income statement for the year ended December 31, 2012. Parsons Repair Service Adjusted Trial Balance December 31, 2012 Accounts Debit Credit Cash $1,600 Accounts receivable 2,400 Prepaid rent 800 Supplies 200 Building 14,000 Accumulated depreciation $2,000 Accounts payable 4,200 Salary payable 1,000 Unearned revenue 800 Common stock 1,000 Retained earnings 5,000 Dividends 1,000 Service revenue 50,000 Salary expense 21,000 Rent expense 14,000 Depreciation expense 8,500 Supplies expense 500 Total $64,000 $64,000 9) Below is the adjusted trial balance for Parsons.
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Learning Objective 4-4 1) The post-closing trial balance is an optional step. 2) The post-closing trial balance shows the updated Retained earnings balance. 3) The post-closing trial balance shows the net income for the period just ended. 4) Only permanent accounts appear on the post-closing trial balance. 5) Only temporary accounts appear on the.
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6) Prepare a statement of retained earnings for the year ended December 31, 2012 from the adjusted trial balance below. Deavours Photography Company Adjusted Trial Balance December 31, 2012 Accounts Debit Credit Cash $2,000 Prepaid insurance 2,000 Office supplies 600 Office equipment 16,000 Accumulated depreciation $3,000 Accounts payable 5,000 Salaries payable 900 Unearned service revenue 2,500 Common stock 5,000 Retained earnings 2,450 Dividends paid 5,600 Service revenue 15,350 Salaries expense 4,600 Depreciation expense 1,000 Supplies expense 400 Insurance expense 2,000 Totals $34,200 $34,200 7) Prepare a balance sheet from the adjusted trial.
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11) Which of the following accounts does cash-basis accounting ignore? A) Payables B) Revenue C) Cash D) Expenses 12) Which of the following entries would be recorded ONLY if a company is using the accrual method of accounting? A) Cash 1,000      Accounts receivable 1,000 B) Salary expense 1,000      Cash 1,000 C) Cash 1,000      Service revenue 1,000 D) Supplies 1,000      Cash 1,000 13) Which of the following entries would be recorded if a.
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Learning Objective 4-5 1) Assets and liabilities are classified as either current or long-term to show their relative liquidity.  2) Prepaid rent is usually a long-term asset.  3) A debt due to be paid within one year (or operating cycle, if longer) is a current liability.  4) A balance sheet.
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15) Employees of Robert Rogers, CPA, worked during the last two weeks of December. They received their paychecks on January 2. The matching principle would require that which of the following accounts appear on the income statement for the year ended December 31? A) Salary expense B) Prepaid expense C) Salaries payable D) Unearned.
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11) Under which of the following categories would Land appear?  A) Long-term assets  B) Current assets  C) Long-term liabilities  D) Current liabilities  12) Under which of the following categories would Accounts payable appear?  A) Current liabilities  B) Current assets  C) Long-term liabilities  D) Long-term assets  13) Which of the following.
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13) Pattie's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances: Salary expense: Debit $6,000 Service revenues: Credit $20,000 Interest expense: 0 Pattie's salaries are $2,000 per week and are paid out at the end of the day on Fridays.  The end of the month falls on a.
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34) The accountant for Noble Jewelry Repair Corporation forgot to make an adjusting entry for Depreciation expense for the current year. What is the effect of this error on total assets? A) Total assets are understated. B) Total assets are not affected. C) Total assets are overstated. D) There is not enough information presented.
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28) Using the following worksheet, please prepare a classified balance sheet in account form. The data are for the Alcazar Service Co. for the year ended December 31, 2013.   Learning Objective 4-6 1) The debt ratio measures a company's overall ability to pay stockholders.  2) The current ratio and the debt.
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47) Please refer to the following adjusted trial balance, and prepare the closing entry for Revenues. Account Title Debit Credit Cash $1,700 Accounts receivable 8,500 Supplies 100 Equipment 7,500 Accumulated depreciation $2,000 Accounts payable 1,200 Salary payable 800 Unearned revenue 600 Common stock 1,000 Retained earnings 2,400 Dividends 2,300 Service revenue 40,000 Salary expense 24,000 Supplies expense 2,300 Depreciation expense 1,600 $48,000 $48,000 48) Please refer to the following adjusted trial balance, and prepare the closing entry for Expenses. Account Title Debit Credit Cash $1,700 Accounts receivable 8,500 Supplies 100 Equipment 7,500 Accumulated depreciation $2,000 Accounts payable 1,200 Salary payable 800 Unearned revenue 600 Common stock 1,000 Retained.
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19) The following transactions have been journalized and posted to the proper accounts. Prepare a trial balance in good form. a.Edward Wilson invested $8,000 cash in his new landscaping corporation in exchange for stock. b.The corporation paid the first month's rent with $300 cash. c.The corporation purchased equipment by paying $2,000 cash ,.
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Learning Objective 5-1 1) The accounting cycle for a merchandising company begins with the purchase of inventory. 2) The periodic inventory system keeps a running record of inventory and cost of goods sold. 3) The perpetual inventory system keeps a running record of inventory and cost of goods sold. 4) The periodic inventory.
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24) Adjusting entries NEVER involve: A) expenses. B) cash. C) liabilities. D) revenues. 25) If an adjusting entry includes a debit to Rent expense, that would indicate that the payment of rent had been previously recorded as a(n) ________ entry. A) prepaid expense B) depreciation C) accrued expense D) accrued revenue 26) An entry that reflects the using up of.
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34) Please refer to the worksheet below.  Adjusting entries have been posted.  Please calculate the adjusted balances for all accounts and enter them in to the columns marked Adjusted trial Balance. 35) Please refer to the worksheet below.  Please complete the worksheet, including the balancing amounts in the last row. .
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44) The following is the adjusted trial balance for Tuttle Photography. Accounts Debit Credit Cash $15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation $12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 Common stock 10,000 Retained earnings 11,290 Dividends 23,000 Service revenue 289,000 Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20,900 $469,790 $469,790 Using the information from the worksheet above, prepare the closing entry for Expenses. 45) The following is the adjusted trial balance for Tuttle.
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2) The following is the adjusted trial balance from the worksheet for Tuttle Photography, Inc. Tuttle Photography, Inc. Worksheet For the Year Ended December 31, 2013 Accounts Debit Credit Cash $15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation $12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 Common stock 10,000 Retained earnings 11,290 Dividends 23,000 Service revenue 289,000 Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20,900 $469,790 $469,790 Using the information from the worksheet above, prepare a statement.
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26) Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?  A) Debit Accumulated depreciation and credit Income summary  B) Debit Depreciation expense and credit Income summary  C) Debit Income summary and credit Accumulated depreciation  D) Debit Income summary and.
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64) Hank's Tax Planning Service started business in January, 2012.  He rented an office for $900 a month starting January 1.  He prepaid the rentals through June 30.   He makes accrual adjustments monthly.   As of April 30, Hank's ledger shows a balance in Prepaid rent of how much? A) $1,800 B) $900 C).
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9) The following is the adjusted trial balance for Tuttle Photography. Accounts Debit Credit Cash $15,000 Accounts receivable 30,000 Prepaid insurance 7,500 Office supplies 3,200 Land 40,000 Building 160,000 Accumulated depreciation $12,000 Equipment 75,000 Accumulated depreciation 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 Common stock 10,000 Retained earnings 11,290 Dividends 23,000 Service revenue 289,000 Salaries expense 61,000 Depreciation expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20,900 $469,790 $469,790 Using the information above, prepare a post-closing trial balance for Tuttle Photography (dated December 31, 2012). .
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4) Using the following worksheet, please prepare an income statement.  The data are for the Alcazar Service Co., for the year ended December 31, 2012. 5) Using the following worksheet, please prepare a statement of retained earnings. The data are for the Alcazar Service Co., for the year ended December 31,.
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30) Please refer to the worksheet below.  Enter the following adjusting entry into the worksheet: At year-end, the company has earned $2,000 of service revenue from a client, but has not yet completed the job, or received a payment. 31) Please refer to the worksheet below.  Enter the following adjusting entry.
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21) Below is a list of various balance sheet accounts and their balances. Debit Credit Notes payable?short term $800 Salary payable 3,600 Notes payable?long term 20,000 Accounts payable 2,200 Unearned revenue 1,000 Interest payable 2,200 What is the total of current liabilities which would be shown on the balance sheet? A) $29,800 B) $9,000 C) $9,800 D) $6,800 22) Below is a list of various balance sheet accounts and their.
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3) All of a company's accounts and their balances appear on the: A) statement of retained earnings. B) balance sheet. C) adjusted trial balance. D) income statement. 4) The accountant for Wilson Consulting Company failed to make an adjusting entry to record $3,000 of unearned service revenue that has now been earned. Which of the.
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26) Please refer to the following information and compute the current ratio: Debit Credit Cash $4,500 Accounts receivable 1,200 Prepaid rent 700 Land 20,000 Equipment 4,000 Accumulated depreciation-equipment $800 Accounts payable 2,900 Salary payable 600 Notes payable-long term 9,000 A) 1.83 B) 0.55 C) 0.51 D) 0.42 27) Please refer to the following information and compute the debt. Debit Credit Cash $4,500 Accounts receivable 1,200 Prepaid rent 700 Land 20,000 Equipment 4,000 Accumulated depreciation-equipment $800 Accounts payable 2,900 Salary payable 600 Notes payable-long term 9,000 A) 1.83 B) 2.37 C) 0.40 D) 0.42 28) Please refer to the following information.
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36) Please refer to the worksheet below:     Post adjustments needed according to the information below, and complete the worksheet. ?At year-end, the company has earned $2,000 of service revenue from a client, but has not yet completed the job, or received a payment. ?At year-end, the company owes $180 of salaries to.
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Learning Objective 3-1 1) Accrual accounting records transactions ONLY when cash is received or paid. 2) The owner of Recipes.org purchases $2,000 of supplies on account. Under the accrual basis of accounting, no entry is made until the $2,000 is paid. 3) In cash-basis accounting, revenue is recognized when cash is received.
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14) The following is the ending month's balances for Toys Galore. Accounts payable $6,790 Revenues 8,680 Cash 4,500 Expenses 1,050 Furniture 8,370 Accounts receivable 7,710 Common stock 930 Notes payable 5,230 What is the total amount of debits for the trial balance? A) $21,630 B) $16,400 C) $20,580 D) $30,310 15) The following is the ending month's balances for Toys Galore. Accounts payable $6,790 Revenues 8,680 Cash 4,500 Expenses 1,050 Furniture 8,370 Accounts receivable 7,710 Common stock 930 Notes payable 5,230 What is the net income for Toys Galore.
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16) Salaries payable is a permanent account. 17) Common stock is a temporary account. 18) Accumulated depreciation is a permanent account. 19) Service revenue is a temporary account. 20) Depreciation expense is a temporary account. 21) Service revenue is a permanent account. 22) Salary expense is a temporary account. 23) Dividends is a permanent account. 24) Retained earnings.
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32) Please refer to the worksheet below.  Enter the following adjusting entry into the worksheet: At year-end, the company has only $20 of supplies left.    33) Please refer to the worksheet below.  Enter the following adjusting entry into the worksheet: At year-end, the company records $240 of depreciation expense.     .
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