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Study Resources (Accounting)

6) Given the income statement columns and the balance sheet columns of the worksheet, prepare a balance sheet dated December 31, 200x, for Baur Company. 7) Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet. 8) Determine the ending owner's equity of a business having.
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4.4   Learning Objective 4-4 1) Financial statements are prepared from the: A) trial balance. B) worksheet income and balance sheet columns. C) adjusted trial balance. D) ledger. 2) Which of the financial statements is prepared first from the worksheet? A) Balance sheet B) Income statement C) Statement of owner's equity D) None of these answers are correct. 3) The ending figure.
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5.2   Learning Objective 5-2 1) Closing entries are prepared: A) to clear all temporary accounts to zero. B) to update the Capital balance. C) at the end of the accounting period. D) All of the above are correct. 2) Income Summary: A) is a temporary account. B) is a permanent account. C) summarizes revenue and expenses and transfers the.
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61) The Withdrawals account is closed to the Owner's Capital account. 62) Real accounts are those accounts with balances that are brought forward to the next accounting period. 63) Nominal accounts are called temporary accounts because their balances are not carried forward to the next accounting period. 64) Revenues and expenses are closed.
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4.2   Learning Objective 4-2 A) prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns. B) complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet.
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14) From the following data, make the following adjustments, and complete the worksheet for the month. a.Depreciation Expense is $350. b.Supplies remaining at end of period $75. c.Prepaid Insurance balance $400, $100 has expired. d.Wages for the 5 day work-week are $500, the month ended on a Wednesday. AccountTrial BalanceAdjustmentsAdj. Trial BalanceIncome StmtBalance Shee DR CR DR CR DR CR DR CR DR CR Cash 750 Accts. Receivable 400 Supplies 250 Prepaid.
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7.1   Learning Objective 7-1 1) A pay period is defined as: A) weekly. B) bi-weekly. C) monthly. D) All of the above are correct. 2) Gross Earnings are the same as: A) regular earnings only. B) regular earnings + overtime earnings. C) net earnings. D) net earnings + overtime earnings. 3) Under the Fair Labor Standards Act, for any hours that.
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21) The estimated value of an item at the end of its useful life is: A) depreciation expense. B) residual value. C) accumulated depreciation. D) None of these answers are correct. 22) Accumulated Depreciation is found on which of the following financial statements? A) Balance sheet B) Income statement C) Statement of Owner's Equity D) All of these answers.
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45) Indicate which adjustments would require a journal entry during the completion of the bank reconciliation. Place an "X" on the respective line(s). ________ a. Deposit in transit ________ b. Bank service charge ________ c. NSF check ________ d. Check written for $58 recorded on the company's ledger as $85 ________ e. Outstanding checks ________ f..
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11) If Prepaid Rent for the period is not adjusted: A) assets will be overstated and expenses will be overstated. B) assets will be overstated and expenses will be understated. C) assets will be understated and expenses will be overstated. D) assets will be understated and expenses will be understated. 12) If the Supplies account.
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31) The Income Summary account shows debits of $19,000 and credits of $10,000. This results in a: A) net income of $29,000. B) net loss of $29,000. C) net income of $9,000. D) net loss of $9,000. 32) After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,000. Which of the following.
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  6.1   Learning Objective 6-1 1) Internal control over a company's assets should include the following policy: A) Responsibilities and duties of employees will be divided. B) All cash receipts will be deposited into the bank the same day they arrive. C) All cash payments will be made by check (except petty cash). D) All of.
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5.3   Learning Objective 5-3 1) The final step in the accounting cycle is: A) preparing the post-closing trial balance. B) preparing the financial statements. C) journalizing the closing entries. D) journalizing the adjusting entries. 2) Which of the following sequence of actions describes the proper order in the accounting cycle? A) Journalize, post, close, prepare financial statements,.
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12) For each account listed identify the category it belongs to, the normal balance (debit or credit), and the financial statement the account appears. Account Category Normal Balance Financial Statement 0. Cash Asset Debit Balance Sheet 1. Depreciation Expense 2. Accumulated Depreciation 3 Wages Expense 4. Office Supplies 5. Office Supplies Expense 6. Wages Payable 7. Prepaid Rent 13) For each account listed, identify the category.
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11) The correct order for closing accounts is: A) revenue, expenses, income summary, withdrawals. B) revenue, income summary, expenses, withdrawals. C) revenue, expenses, capital, withdrawals. D) revenue, capital, expenses, withdrawals. 12) To close the Fees Earned account: A) debit Income Summary; credit Fees Earned. B) debit Fees Earned; credit Capital. C) debit Fees Earned; credit Income Summary. D) debit.
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79) In the first space below, indicate whether each account is a real or nominal account using (R) Real Account and (N) Nominal Account. In the second space below, indicate by an (X) if the account should be closed.   N     X   0. Advertising Expense ________________ 1. Cash ________________ 2. Tennis Fees ________________ 3. Accounts Receivable ________________.
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41) From the following information, prepare the bank reconciliation for Paul's Photography Studio for June. Ending checkbook balance$90 Ending bank statement balance30 Deposits in transit90 Outstanding checks40 Service Charge10 42) Construct the bank reconciliation for Mitter Company as of July 31, from the following information: a. Balance per bank statement$9,150 b. Deposit in transit705 c. Checkbook balance9,250 d. Outstanding checks800 e..
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21) The normal balance of the Petty Cash account is a credit. 22) The Petty Cash account should always be debited when the fund is replenished. Indicate which effect(s) each situation will have: 1.New check written 2.Recorded in the general journal 3.Recorded in auxiliary petty cash record 4.Petty cash voucher prepared 23) ________ Establishment of petty cash 24).
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41) Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in: A) understated assets. B) overstated net income. C) overstated liabilities. D) understated capital. 42) Online Service received its telephone bill for January, but is not going to pay the bill.
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4.3   Learning Objective 4-3 1) The capital balance amount shown in the balance sheet column of the worksheet represents: A) the beginning capital plus net income. B) the beginning capital plus net income less withdrawal. C) the beginning capital less withdrawals. D) the beginning capital plus any investments to capital that occurred during the period. 2).
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  5.1   Learning Objective 5-1 1) Adjusting journal entries: A) need not be journalized since they appear on the worksheet. B) need not be posted if the financial statements are prepared from the worksheet. C) are not needed if closing entries are prepared. D) must be journalized and posted. 2) Journal entries that are needed in order.
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51) Historical cost is the same as: A) residual value. B) original cost. C) accumulated depreciation. D) book value. 52) The accrual of an expense was not recorded. This would: A) overstate expenses and overstate liabilities. B) overstate expenses and understate liabilities. C) understate expenses and overstate liabilities. D) understate expenses and understate liabilities. 53) Depreciation of equipment was recorded.
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11) The income statement debit column of the worksheet showed the following expenses: Supplies Expense $600 Depreciation Expense 400 Salaries Expense 300 The journal entry to close the expense accounts is: A) Income Summary 1,300 Supplies Expense 600 Depreciation Expense 400 Salaries Expense 300 B) Income Summary 1,200 Capital 1,200 C) Supplies Expense 500 Depreciation Expense 400 Salaries Expense 300 Income Summary 1,200 D) Capital 1,200 Income Summary 1,200 12) The ending balances in the ledger after posting the adjusting entries, will.
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21) How do you close the expense accounts? A) Debit Capital; credit the expense accounts B) Credit Capital; debit the expense accounts C) Credit Income Summary; debit the expense accounts D) Debit Income Summary; credit the expense accounts 22) All permanent accounts can be found: A) on the Income Statement. B) on the Statement of Owner's Equity. C).
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6.3   Learning Objective 6-3 1) What type of an account is the petty cash fund? A) Revenue B) Expense C) Asset D) Liability 2) A petty cash fund is set up: A) to pay for large expenses. B) to pay for small expenses. C) for the owner to withdraw money for personal use conveniently. D) None of these answers are.
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81) From the following items in the income statement columns of the worksheet of Monaghan Company at December 31, prepare the closing entries without explanation, assuming that a $500 withdrawal was made during the period. Income Statement Account                      Debit       Credit Service Revenue900 Wages Expense550 Rent Expense250 Supplies Expense100 Insurance Expense50____ 950900 Net Loss____50 $950        $950 82) A summary of selected ledger accounts appear below.
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35) Deposits in transit result because of a timing difference between the bank records and checkbook records. 36) Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry. 38) Transferring money without paper checks is called electronic funds transfer. 39) If a check marked NSF.
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  4.1   Learning Objective 4-1 1) A form used to organize and check data before preparing financial reports is known as a(n): A) trial balance. B) income statement. C) balance sheet. D) worksheet. 2) Bringing account balances up to date before preparing financial reports is called: A) posting. B) adjusting. C) journalizing. D) analyzing. 3) An adjustment for Prepaid Rent would indicate: A).
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30) Prepare journal entries for the following petty cash fund transactions: Nov.1 Established a $75 petty cash fund. 15 Increased the petty cash fund to have a new balance of $100. 30 Replenished the petty cash fund. Currency and coins remaining were $30. Approved paid vouchers were: $10 donation expense; $16 postage expense;.
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31) Samantha purchased a two-year insurance policy for $7,200. The adjusting entry for one month would include a: A) debit to Insurance Expense, $300. B) credit to Cash, $300. C) debit to Prepaid Insurance, $300. D) credit to Insurance expense, $300. 32) Sarah's Spices' accrued wages are $1,800. Which of the following is the required.
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51) The revenue accounts debited and the Income Summary account credited would be the result of: A) closing the Income Summary account—there is a net income. B) closing the Income Summary account—there is a net loss. C) closing the revenue accounts. D) closing the expense accounts. 52) When closing the Income Summary account when there.
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11) There are two parts to FICA: A) old age benefits and workers' compensation. B) retirement and income tax withholdings. C) OASDI and Medicare. D) All of these answers are correct. 12) FICA taxes provide funding to the government to pay: A) monthly retirement benefits for persons over age 62. B) medical benefits for persons over age.
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11) Advantages of on-line banking include: A) convenience. B) transaction speed. C) effectiveness. D) All of the above are correct. 12) A deposit received by the bank will include: A) a debit to the company's bank account. B) a credit to the company's bank account. C) no increase or decrease is made to the company's bank account. D) a.
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84) What are the major goals of the closing process? 85) Determine the ending owner's equity of a business having a beginning owner's equity of $4,200, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750. $ ________ 86) Determine the beginning owner's equity of.
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12) From the following accounts, prepare in proper form a post-closing trial balance for Logan's Pet Sitting on December 31. (Note: These balances are before closing). Logan, Capital$7,400 Cash2,000 Accumulated Depreciation1,500 Equipment5,000 Accounts Payable900 Logan, Withdrawals1,000 Wages Expense2,250 Supplies Expense775 Accounts Receivable3,125 Personal Trainer Fees4,350 13) From the following accounts, prepare in proper form a post-closing trial balance for Matison Company.
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21) The drawer writes the check. 22) The drawee of the check is the person receiving the money. 23) The drawee of a check is normally the bank. 24) A deposit ticket usually separates checks deposited from coin and currency deposited. 25) Phishing occurs when a bank customer receives an email requesting personal information. 26).
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