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Study Resources (Accounting)

21) Which of the following accounts are closed to the owner's capital account? A) liabilities and assets B) the owner's withdrawals account and liabilities C) income summary and the owner's withdrawals account D) revenues, expenses, and liabilities 22) Which of the following accounts will have a zero balance after the closing process is completed? A) accumulated.
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30) Prepare a classified balance sheet in report form based on the adjusted trial balance for the Wood Productions on December 31, 2013. Wood Productions Adjusted Trial Balance December 31, 2013 DebitCredit Cash$2,000 Accounts receivable9,000 Prepaid rent5,000 Prepaid insurance2,500 Supplies3,200 Land30,000 Building50,000 Accumulated amort.-building$10,000 Equipment35,000 Accumulated amort.-equipment7,000 Accounts payable8,000 Salary payable3,000 Interest payable1,000 Mortgage payable (due 12/31/2018)40,000 Jennifer Wood, Capital84,900 Jennifer Wood, Withdrawals10,000 Service revenue80,000 Salary expense28,000 Insurance expense5,000 Rent expense12,000 Utilities expense15,000 Advertising expense9,000 Amortization expense-building10,000 Amortization expense-equipment7,000 Supplies.
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Objective 5-1 1) Inventory includes all goods that the company owns and expects to use in normal operations. 2) Sales revenue and Net sales are synonymous terms. 3) Cost of goods sold is an operating expense. 4) Gross margin is equal to net sales plus cost of goods sold. 5) Inventory is a current.
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39) Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet. Beatty Services Work Sheet For the Year Ended December 31, 2014 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 Service Revenue 31 Brad Beatty, Capital 30 Brad Beatty, Withdrawals 5 Service Revenue 41 Salary Expense 10 Rent Expense 8 Advertising Expense 4 Supplies Expense 0 Amort.Expense - Equipment 0 110 110   Additional information: a) Supplies used, $4. b) Amortization on equipment, $6. c) Unearned service revenue.
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16) If a purchaser returns goods purchased on account to the supplier under a perpetual inventory system, the purchaser would debit: A) Inventory and credit Accounts Payable. B) Accounts Payable and credit Inventory. C) Inventory and credit Accounts Receivable. D) Accounts Receivable and credit Inventory. 17) When a discount is taken for prompt payment under.
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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, 2014. 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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31) Unearned fees appears on the: A) adjusted trial balance debit column and income statement credit column of a worksheet. B) adjusted trial balance debit column and balance sheet credit column of a worksheet. C) balance sheet credit column and adjusted trial balance credit column of a worksheet. D) "Unearned fees" does not appear.
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Objective 5-3 1) The adjusting entry to record inventory shrinkage would include a debit to the cost of goods sold account in a perpetual inventory system. 2) In the closing entry process, the sales returns and allowances account is debited. 3) The adjusting entry required when the inventory counted is greater than the.
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11) All of the following are current assets except: A) cash. B) accounts receivable. C) buildings. D) prepaid rent. 12) All of the following are property, plant and equipment except: A) office supplies. B) land. C) buildings. D) equipment. 13) Debts that are due to be paid within one year or within the entity's operating cycle, whichever is longer, are.
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19) Using the following worksheet for Alcazar Services, prepare a statement of owner's equity. Alcazar Services Worksheet December 31, 2014 AdjustedIncomeBalance Trial BalanceAdjustmentsTrial BalanceStatementSheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 1,700 1,700 1,700 Accounts Receiv. 8,500 2,000 10,500 10,500 Supplies 100 80 20 20 Equipment 7,500 7,500 7,500 Accum. Amort. 2,000 240 2,240 2,240 Accounts Payable 1,200 1,200 1,200 Salary Payable 800 180 980 980 Unearned Revenue 600 600 600 Owner Capital 3,400 3,400 3,400 Owner Withdraw. 2,300 2,300 2,300 Service Revenue 40,000 2,000 42,000 42,000 Salary Expense 24,000 180 24,180 24,180 Supplies Expense 2,300 80 2,380 2,380 Amort. Expense 1,600 240 1,840 1,840      Total 48,000 48,000 2,500 2,500 50,420 50,420 28,400 42,000 22,020 8,420 Net income/(loss) 13,600 13,600       Total 42,000 42,000 22,020 22,020 20) Using the following worksheet for Alcazar Services, prepare a non-classified balance sheet. Alcazar Services Worksheet December 31, 2014 AdjustedIncomeBalance Trial.
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17) Indicate where each of the following accounts would be reported in the financial statements for the year ended December 31, 2014: 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, 2017) 4)  __________  accounts receivable 5)  __________ .
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48) Tobermory Merchandising had the following transactions during May: May 5              Purchased $2,700 of merchandise on account, terms 3/15 n/60, FOB shipping point. 9Paid transportation cost on the May 5 purchase, $250. 10Returned $400 of defective merchandise purchased on May 5. 15Paid for the May 5 purchase, less the return and the discount. Required: Assuming.
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  Table 5-10 The December 31, 2014 adjusted trial balance for Camptown Company is shown below. Debit Credit Cash $12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable $4,200 Salary payable 1,000 Notes payable 800 Capital 13,800 Drawing 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales discounts 400 Cost of goods sold 25,000 Salary expense 21,000 Rent expense 22,500 Supplies expense 500 Total $115,800  $115,800 13) Using the information.
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Objective 4-3 1) Closing the accounts consists of journalizing and posting entries, which will zero out all temporary accounts. 2) Capital, expenses, and withdrawals are all closed to the income summary account. 3) The closing process applies to only balance sheet accounts. 4) The closing process applies to only to income statement accounts. 5) A.
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11) The following information is given for Ribbons and Bows prior to adjustments on December 31, 2013. 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, 2013, is a Thursday. b) On October 1,.
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13) Given the adjusted trial balance for the Stoney Creek Resort, prepare the income statement for the year ended December 31, 2014. There were no owner investments during the year. Stoney Creek Resort Adjusted Trial Balance December 31, 2014   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 Reycraft, Withdraw23,000 Service revenue257,200 Salary.
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  Table 4-3   Selected accounting data for the Mariot Services follows:  Current assets$59,000 Current liabilities20,000 Long-term assets70,000 Long-term liabilities37,000 Total revenues25,000 Total expenses22,000 11) Referring to Table 4-3, the current ratio is: A) 1.13 B) 2.95 C) 2.26 D) 0.34 12) Referring to Table 4-3, the debt ratio is: A) 0.44 B) 2.26 C) 0.53 D) 0.29 Table 4-4 Selected accounting data as at December 31, 2014 for Huma.
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For the items listed below, choose the appropriate code letter to indicate whether the account is: TRTemporary account with normal balance credit, closed to Income Summary TETemporary account with normal balance debit, closed to Income Summary PAPermanent Account with normal balance debit, not closed PL&EPermanent Account with normal balance credit, not closed 31) Rent Expense 32).
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11) Net income appears on the worksheet: A) only in the balance sheet credit column. B) only in the income statement credit column C) in the income statement debit column and balance sheet debit column D) in the income statement debit column and balance sheet credit column 12) Net loss appears on the worksheet: A) in.
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11) Following is a random list of some of the accounts and their balances on December 31, 2013, for Copperfield Merchandising. Copperfield uses a perpetual inventory system and all account balances are normal. Inventory$ 67,000 Sales revenue470,000 Interest revenue28,000 Salary expense46,000 Sales returns & allowances30,000 Interest expense13,000 Delivery expense15,000 Sales discounts25,000 Insurance expense8,000 P.Copperfield, Capital50,000 Utilities expense29,000 Amortization expense20,000 P Copperfield, Withdrawals25,000 Cost of.
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Objective 4-7 1) The accounting cycle is the process by which companies produce their financial statements for a specific period of time. 2) The accounting cycle as well as financial statement presentation is different for companies reporting under international financial reporting standards (IFRS) and those reporting under accounting standards for private enterprises.
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  Table 5-9 Reid Art Supply Company uses a perpetual inventory system. The company had the following transactions during August, 2013: Aug. 5Purchased $2,900 of merchandise on account; FOB shipping point, 3/15, n/60. Aug. 9Paid transportation costs of $440 for the Aug. 5 purchase. Aug. 10Returned $600 of defective merchandise purchased on Aug. 5. Aug. 15Paid.
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41) The following accounts appear in the adjusted trial balance columns of a worksheet. State the column that each account balance is extended to, choosing from the following columns: 1) income statement debit 2) balance sheet debit 3) income statement credit 4) balance sheet credit a) _________  service revenue b) _________  unearned service revenue c) _________  land d).
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25) Following is the adjusted trial balance for Simcoe Fishing Cabin: Debit Credit Cash $6,000 Accounts receivable 2,000 Prepaid insurance 800 Land 40,000 Building       50,000 Accumulated amortization $32,000 Accounts payable 9,400 Wages payable 4,000 Notes payable—short term 3,200 Calculate the current ratio and the debt ratio, then comment on the firms liquidity and capital structure. 26) Given the following adjusted trial balance for Leighton Industries, prepare a.
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11) Revenues total $20,200, expenses total $17,300, and the owner's withdrawals account has a balance of $12,600. What is the balance in the income summary account prior to closing net income or net loss? A) $2,900 debit B) $9,700 debit C) $2,900 credit D) $9,700 credit 12) Revenues total $20,200, expenses total $17,300, and the.
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43) Complete the following December 31, 2014 worksheet. for Alcazar Services: AdjustedIncomeBalance Trial BalanceAdjustmentsTrial BalanceStatementSheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 1,700 1,700 Accounts Receiv. 8,500 2,000 10,500 Supplies 100 80 20 Equipment 7,500 7,500 Accum. Amort. 2,000 240 2,240 Accounts Payable 1,200 1,200 Salary Payable 800 180 980 Unearned Revenue 600 600 Owner Capital 3,400 3,400 Owner Withdraw. 2,300 2,300 Service Revenue 40,000 2,000 42,000 Salary Expense 24,000 180 24,180 Supplies Expense 2,300 80 2,380 Amort. Expense 1,600 240 1,840      Total 48,000 48,000 2,500 2,500 50,420 50,420 Net income/(loss)       Total 44) Describe a worksheet and list the benefits to be derived from using a worksheet. Be specific. .
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34) Underwater Adventures has the following account balances on August 31, 2014: Accounts payable$8,800 Accounts receivable9,600 Accumulated amortization - equipment30,300 Cash2,200 Cost of goods sold341,500 Jacobson, capital190,700 Jacobson, withdrawals44,000 Equipment88,000 Interest earned2,000 Inventory71,500 Operating expenses175,500 Sales discounts3,100 Sales returns and allowances14,400 Sales revenue520,600 Supplies7,100 Unearned sales revenue4,500 The following information as at August 31, 2014 was also available: a.A physical count of items showed $1,200 of supplies on.
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45) The following data pertain to Corbet Merchandising for the year ended December 31, 2013: Beginning inventory$190,300 Purchases of inventory on credit during the year 450,000 Cost of goods sold during the year   65% of sales Sales (75% on credit) during the year  800,000 a)  Prepare entries for the following transactions using a perpetual inventory.
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1) The worksheet is used only for accounts that are adjusted. 2) The unadjusted trial balance columns of a worksheet contain the account balances that appear on the financial statements. 3) On the worksheet, the difference between the balance sheet debit column and the balance sheet credit column represents the net income.
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Objective 4-5 1) Current assets are assets that are expected to be converted to cash, sold, or consumed during the next 12 months or within the operating cycle if less than 12 months. 2) On the income statement, revenues and expenses are classified as either current or long-term to indicate their relative.
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40) Given the following worksheet with the trial balance already entered, and the adjustment information, complete the worksheet. Tree Top Trimming Work Sheet For the Year Ended December 31, 2014   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, $2. c) Balance of unearned service revenue.
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45) Given the following adjusted account balances in random order, prepare the closing entries for Sheer Fabrics on December 31, 2013. Cash35,000 Suzie Sheer, Capital85,000 Accounts payable33,000 Service revenue84,000 Amortization expense-building 12,000 Salary expense29,000 Unearned service revenue24,000 Prepaid rent9,000 Supplies expense6,000 Note payable71,000 Land65,000 Accounts receivable32,000 Accum. amortization-building12,000 Interest revenue14,000 Interest payable3,000 Suzie Sheer, Withdrawals20,000 Rent expense15,000 Building95,000 Supplies4,000 Interest expense4,000         46) Identify the following accounts as temporary or permanent. TemporaryPermanent Cash____________________ Utilities expense____________________ Unearned.
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  Match the following. A) current liability B) current asset 21) An asset that is expected to be converted to cash, sold, or consumed during the next 12 months, or within the business's normal operating cycle, whichever is longer 22) A debt due to be paid within one year or the operating cycle, whichever is.
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Objective 5-4 1) Operating expenses are divided into manufacturing expenses and selling expenses on the income statement. 2) The multi-step income statement format shows subtotals to highlight significant relationships. 3) Gross margin minus operating expenses equals income from operations on a multi-step income statement. 4) A single-step format of the income statement will always.
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15) Given the adjusted trial balance for the Stoney Creek Resort, prepare the statement of owner's equity for the year ended December 31, 2014. There were no owner investments during the year. Stoney Creek Resort Adjusted Trial Balance December 31, 2014 DebitCredit Cash$ 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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43) Based on the following adjusted trial balance, prepare the closing entries for Dave Scott and Associates (a proprietorship) on December 31, 2013. Dave Scott and Associates Adjusted Trial Balance December 31, 2013 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 expense500 Insurance expense650 Utilities.
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48) Given the following adjusted trial balance for Leighton Industries, prepare a postclosing trial balance dated December 31, 2014. Leighton Industries Adjusted Trial Balance December 31, 2014 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 12/31/2019)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     1,200________ Total$255,000$255,000 Calculate the.
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  Table 5-6 The following are transactions for Latest Fashions for the month of June. June 2Purchased $2,000 of inventory under terms 1/10, n/60 and FOB shipping point from Trendy Manufacturing. The merchandise had cost Trendy $1,800 June 7Returned defective merchandise to Trendy Manufacturing with invoice price of $400. June 8Paid the freight charges.
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  Table 4-8 Tuttle Photography 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 amortization $12,000 Equipment 75,000 Accumulated amortization 8,500 Accounts payable 12,000 Salaries payable 2,000 Unearned service revenue 25,000 Mortgage payable 100,000 R. Tuttle, capital 21,290 R. Tuttle, withdrawals 23,000 Service revenue 289,000 Salaries expense 61,000 Amortization expense 6,150 Supplies expense 14,040 Insurance expense 14,000 Utilities expense 20,900 $469,790 $469,790 47) Prepare the closing journal entries for Tuttle Photography and an adjusted trial balance dated December 31, 2013. Answer: .
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  Table 3-4 The unadjusted trial balance of Holitzner Roof Repairs appears below as at December 31, 2014. Holitzner records purchases of roof supplies to the expense account, and cash received in advance from customers as revenue. DebitCredit Cash$5,300 Accounts receivable7,300 Roofing supplies Equipment6,000 Accumulated amortization$1,200 Salaries payable1,100 Interest payable Unearned service revenue Note payable10,000 Carmen Holitzner, capital6,400 Carmen Holitzner, withdrawals600 Service revenue3,000 Salaries expense500 Amortization.
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