Info
Warning
Danger

Accounting Expert Answers, Study Resources & Learning Aids

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
124.Boyce Company purchased office supplies costing $5,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $1,400 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: a.debit Office.
9 Views
View Answer
Ex. 236 The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2012. Accounts Receivable $11,400 Prepaid Insurance $  1,800 Accounts Payable 7,400 Maintenance/Repairs Expense 1,200 Cash 17,940 Service Revenue 15,500 Equipment 59,360 Dividends 800 Gasoline Expense 950 Common Stock 40,000 Insurance Expense 600 Salaries and Wages Expense 6,400 Notes Payable, due 2015 31,450 Salaries and Wages Payable 900 Retained Earnings 5,200    (July 1, 2012) Instructions Prepare an income statement, a retained earnings statement, and a classified.
8 Views
View Answer
BRIEF EXERCISES Be. 235 Identify the effect, if any, that each of the following transactions would have upon cash and retained earnings.  Show the dollar amount and the effect (+, –, N). Retained _Cash__Earnings 1.Purchases capital asset for $3,000______________ 2.Purchased $200 of supplies for cash______________ 3.Recorded an adjusting entry to record use of $110 of the above supplies.______________ 4.Received.
16 Views
View Answer
              31.Asset prepayments become expenses when they expire.               32.A contra asset account is subtracted from a related account in the balance sheet.               33.Accrued revenues are revenues that have been earned but cash has not been received  before financial statements have been prepared.               34.The adjusting entry for accrued salaries requires a.
9 Views
View Answer
Be.  247 Prepare adjusting entries for the following transactions. Omit explanations. 1.Unrecorded interest accrued on savings bonds is $200. 2.Property taxes incurred but not paid or recorded amount to $900. 3.Salaries incurred by year end but not yet paid or recorded amounted to $600. Be. 248 The adjusted trial balance of Warbocks Corporation at December 31,.
10 Views
View Answer
Ex. 251 The transactions of the Speedy Delivery Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided. General Journal DateAccount Titles and ExplanationDebitCredit 2012 Sept.1Cash25,000 Common.
10 Views
View Answer
Ex. 244 Eight transactions are recorded in the following T accounts: Cash Accounts Receivable (1) 35,000 (2) 3,500 (5) 27,500 (7) 22,500 (7) 22,500 (3) 1,950 (4) 2,225 (6) 8,000 (8) 4,500 Supplies Equipment (3) 1,950 (2) 13,500 Common Stock Service Revenue (1) 35,000 (5) 27,500 Accounts Payable Dividends (6) 8,000 (2) 10,000 (8) 4,500 Salaries Expense (4) 2,225 Indicate for each debit and each credit:  (a) whether an asset, liability, common stock, dividends, revenue, or expense account was affected and (b) whether the account was increased (+) or (–) decreased. Answers should be presented.
13 Views
View Answer
214.The purpose of the post-closing trial balance is to: a.prove that no mistakes were made. b.prove the equality of the permanent account balances that are carried forward into the next accounting period. c.prove the equality of the temporary account balances that are carried forward into the next accounting period. d.list all the balance sheet.
12 Views
View Answer
Ex. 252 Selected transactions from the journal of Giambi Inc. during its first month of operations are presented here. Date Account Titles Debit Credit Aug.   1 Cash 10,000     Common Stock 10,000 10 Cash 1,700     Service Revenue 1,700 12 Equipment 8,200     Cash 1,200     Notes Payable 7,000 25 Accounts Receivable 2,500     Service Revenue 2,500 31 Cash     600     Accounts Receivable     600 Ex. 252(Cont.) Instructions (a)Post the transactions to T accounts. (b)Prepare a trial balance at August 31, 2012. Ex. 253 The accounts in.
8 Views
View Answer
MULTIPLE CHOICE QUESTIONS               54.The periodicity assumption states that: a.a transaction can only affect one period of time. b.estimates should not be made if a transaction affects more than one time period. c.adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations. d.the economic life of.
10 Views
View Answer
SHORT-ANSWER ESSAY QUESTIONS S-A E 270 Describe the accounting information system and the steps in the recording process. S-A E 271 A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits. Can the student be successful in the course without an understanding of the rules of debits.
10 Views
View Answer
194.Employees at Biquell Corporation are paid $8,000 cash every Friday for working Monday through Friday.  The calendar year accounting period ends on Wednesday, December 31.  How much salary expense should be recorded two days later on January 2? a.$8,000 b.$4,800 c.None, expense recognition requires the weekly salary to be accrued on December 31. d.$3,200 195.An.
10 Views
View Answer
Ex. 233 Analyze the following transactions in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (–) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. (1) Issued stock to investors for.
7 Views
View Answer
Ex. 245 For each of the following accounts indicate (a) the type of account (Asset, Liability, Stockholders’ Equity, Revenue, and Expense), (b) the debit and credit effects, and (c) the normal account balance. Example 0.Casha.Asset account b.Debit increases, credit decreases c.Normal balance - debit Accounts 1.Accounts Payable              5.              Service Revenue 2.Accounts Receivable              6.Insurance Expense 3.Common Stock              7.              Notes Payable 4.Dividends             .
8 Views
View Answer
              41.When closing entries are prepared, each income statement account is closed directly to retained earnings.               42.Cash is a temporary account.               43.The post-closing trial balance will contain only permanent—balance sheet—accounts.               44.Accounts receivable is a permanent account.               45.The Dividends account is closed to the Income Summary account at the end of.
14 Views
View Answer
IFRS QUESTIONS               1.Which of the following statements is true regarding debits and credits? a.On the income statement, debits are used to increase account balances, whereas on the statement of financial position, credits are used to increase account balances. b.The basic equation on the statement of financial position is Assets + Liabilities.
13 Views
View Answer
Ex. 240 The chart of accounts used by Norton Printing Company is listed below. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes. CHART OF ACCOUNTS 1Cash8Common Stock 2Accounts Receivable9Retained Earnings 3Supplies10Dividends 4Equipment11Service Revenue 5Accounts Payable12Advertising Expense 6Notes Payable13Rent Expense 7Unearned Service Revenue Number(s)Number(s) of.
15 Views
View Answer
114.Unearned revenues are: a.received and recorded as liabilities before they are earned. b.earned and recorded as liabilities before they are received. c.earned but not yet received or recorded. d.earned and already received and recorded. 115.Adjusting entries affect at least: a.one revenue and one expense account. b.one asset and one liability account. c.one revenue and one balance sheet account. d.one.
10 Views
View Answer
              64.Otto’s Tune-Up Shop follows the revenue recognition principle. Otto services a car on August 31.  The customer picks up the vehicle on September 1 and mails the payment to Otto on September 5.  Otto receives the check in the mail on September 6.  When should Otto show that the.
12 Views
View Answer
S-A E 278(Ethics) Robert Harder, Jr. was appointed the manager of Westbrook Properties, a recently formed company that manages residential rental properties. Maria Valdez is the accountant. She prepared a chart of accounts based on an analysis of the expenditures of the company. One of the largest expense categories is Travel.
10 Views
View Answer
224.The following information is from the Income Statement of the Dirt Poor Laundry Service: Revenues Laundry Service Revenues                             $5,500 Expenses Wages expense              $ 1,450 Advertising expense               500 Rent expense                 300 Supplies expense                 200 Insurance expense                   100 Total expenses                                2,550               Net Income $2,950               The entry to close.
12 Views
View Answer
Ex. 247 Journalize the following business transactions in general journal form.  Identify each transaction by number.  You may omit explanations of the transactions.               1.Received $35,000 from stockholders.               2.Purchased equipment for $60,000, paying $15,000 in cash and giving a note payable for the remainder.               3.Paid $3,000 rent for the month.               4.Recorded $12,500.
11 Views
View Answer
174.A revenue–asset relationship exists with: a.prepaid expense adjusting entries. b.accrued expense adjusting entries. c.unearned revenue adjusting entries. d.accrued revenue adjusting entries. 175.The accounts of a business before an adjusting entry is made to record accrued revenue reflect an: a.understated liability and an overstated revenue. b.overstated asset and an understated revenue. c.understated expense and an overstated revenue. d.understated asset and.
10 Views
View Answer
Ex. 248 Transactions for the Hartman Company for the month of November are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations. 1.Stockholders invested an additional $36,000 cash in the business. 2.Purchased land costing $18,000 for cash. 3.Purchased equipment costing $30,000 for $4,500 cash and the remainder.
19 Views
View Answer
TRUE-FALSE STATEMENTS               1.The periodicity assumption states that the economic life of a business entity can be divided into artificial time periods.               2.The periodicity assumption is often referred to as the expense recognition principle.               3.The revenue recognition principle dictates that revenue be recognized in the accounting period in which it is.
20 Views
View Answer
Ex. 254 The trial balance of the Gavin Company shown below does not balance. GAVIN COMPANY Trial Balance June 30, 2012    Debit   Credit Cash ............................................$  2,600 Accounts Receivable ................................7,600 Supplies ..........................................600 Equipment ........................................8,300 Accounts Payable ...................................$  9,766 Common Stock .....................................1,941 Dividends .........................................1,500 Service Revenue ...................................15,200 Salaries and Wages Expense ..........................3,800 Maintenance/Repairs Expense .........................    1,600       Totals .......................................$26,000$26,907 An examination of the ledger and journal reveals the following.
9 Views
View Answer
154.From an accounting standpoint, the acquisition of long-lived assets is essentially a(n): a.accrual of expense. b.accrual of revenue. c.accrual of unearned revenue. d.prepaid expense. 155.If a business pays rent in advance and debits a Prepaid Rent account, the company receiving the rent payment will credit: a.cash. b.prepaid rent. c.unearned rent revenue. d.accrued rent revenue. 156.An accumulated depreciation account: a.is a contra.
9 Views
View Answer
134.Payments of expenses that will benefit more than one accounting period are identified as a.expenses. b.revenues. c.prepaid expenses. d.liabilities. 135.A company usually determines the amount of supplies used during a period by: a.adding the supplies on hand to the balance of the Supplies account. b.summing the amount of supplies purchased during the period. c.taking the difference between the.
13 Views
View Answer
              84.Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting. Revenue earned              $14,000 Accounts receivable              3,000 Expenses incurred              7,250 Accounts payable (related to expenses)              750 Supplies purchased with cash              1,800 a.$4,500 b.$9,000 c.$2,700 d.$4,950 85.              Given the data below for a firm in its first year of.
9 Views
View Answer
164.James & Younger Corporation purchased a one-year insurance policy in January 2010 for $36,000.  The insurance policy is in effect from March 2010 through February 2010.  If the company neglects to make the proper year-end adjustment for the expired insurance: a.net income and assets will be understated by $30,000. b.net income and.
9 Views
View Answer
              94.The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is: a.contra asset. b.prepayment. c.asset. d.accrued. 95.              Accounts often need to be adjusted because: a.there are never enough accounts to record all the transactions. b.many transactions affect.
11 Views
View Answer
144.At December 31, 2011, before any year-end adjustments, Janus Company's Prepaid Insurance account had a balance of $2,400.  It was determined that $1,000 of the Prepaid Insurance had expired.  The adjusted balance for Prepaid Insurance for the year would be: a.$1,000. b.$1,400. c.$3,800. d.$2,400. 145.At the end of the fiscal year, the usual adjusting entry.
9 Views
View Answer
Ex. 241 Under a double-entry system, show how the entry in each statement is entered in the ledger by using debit or credit to indicate the increase or decrease in the affected account.         Debit or Credit                 1.An increase in Salaries and Wages Expense.                                          2.An increase in Accounts Payable.                           .
23 Views
View Answer
              11.Adjusting entries are often made because some business events are not recorded as they occur.               12.Adjusting entries are recorded in the general journal but are not posted to the accounts in the general ledger.               13.Adjusting entries are not necessary if the trial balance debit and credit columns balances are.
10 Views
View Answer
S-A E 273 An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased and its normal balance. S-A E 274 Why is the.
11 Views
View Answer
Ex. 246 Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.               1.Stockholders invest $25,000 in cash in starting a real estate office operating as a corporation.               2.Purchased $500 of supplies on credit.               3.Purchased equipment for $15,000, paying $3,500 in.
53 Views
View Answer
              21.Accrued revenues are revenues that have been earned but not yet recorded.               22.The difference between unearned revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and unearned revenue has never been recorded.               23.If prepaid costs are initially recorded as an asset, no adjusting entries.
6 Views
View Answer
Be.  239 State whether each situation is a prepaid expense (PE), unearned revenue (UR), accrued revenue (AR) or an accrued expense (AE).               1.Unrecorded interest on savings bonds is $245.               2.Property taxes that have been incurred but that have not yet been paid or recorded amount to $300.               3.Legal fees of $1,000.
12 Views
View Answer
              74.Under the accrual basis of accounting: a.cash must be received before revenue is recognized. b.net income is calculated by matching cash outflows against cash inflows. c.events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received. d.the ledger.
14 Views
View Answer
184.Amos Real Estate signed a four-month note payable in the amount of $12,000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is: a.$360. b.$90. c.$1,080. d.$120. 185.DeNova Real Estate signed a four-month note payable in the amount of.
10 Views
View Answer
Ex. 238 For each item below, indicate whether a debit or credit applies.               1.Decrease in Notes Payable____ __               2.Increase in Dividends____ __               3.Increase in Common Stock____ __               4.Increase in Unearned Rent Revenue____ __               5.Decrease in Interest Payable____ __               6.Increase in Prepaid Insurance____ __               7.Decrease in Salaries Wages Expense____ __               8.Decrease in Supplies____ __               9.Increase in Revenues____ __               10.Decrease in Accounts.
8 Views
View Answer
Ex. 250 These T accounts summarize the ledger of Garner's Gardening Company Inc. at the end of the first month of operations, April 2012.        Cash Unearned Service Revenue Apr. 1 15,000 Apr. 15 1,200 Apr. 30 900 12 700 25 3,500 29 800 30 900         Accounts Receivable Common Stock Apr. 7 2,400 Apr. 29 800 Apr.   1 15,000          Supplies Service and Wages Revenue Apr. 4 5,700 Apr.   7 2,400 12 700         Account Payable Salaries Expense Apr. 25 3,500 Apr.   4 5,700 Apr. 15 1,200 Ex. 250(Cont.) Instructions (a)Prepare in the order they occurred the journal entries (including explanations).
11 Views
View Answer
204.Given the following adjusted trial balance: DebitCredit Cash              $1,562 Accounts receivable                2,098 Inventory                3,124 Prepaid rent                     86 Property, plant & equipment                   300 Accumulated depreciation                                   52 Accounts payable                                   82 Unearned revenue                                 122 Common stock                                 206 Retained earnings                               6,610 Service revenue                                 268 Interest revenue                                   56 Salary expense             .
13 Views
View Answer
MATCHING 269.Match the items below by entering the appropriate code letter in the space provided. A.AccountF.Journal B.Normal account balanceG. Posting C.DebitH.Chart of accounts D.Revenue accountI.Trial balance E.LedgerJ.Source document ____              1.The entire group of accounts maintained by a company. ____              2.Transferring journal entries to ledger accounts. ____              3.The side which increases an account. ____              4.A list of all the accounts used.
10 Views
View Answer
  Exercises Ex. 229 Selected transactions for the Sleezer Company are listed below. List the number of the transaction and then describe the effect of each transaction on assets, liabilities, and stockholders’ equity. Sample:  Made initial cash investment in the business. The answer would be—Increase in assets and increase in stockholders’ equity. 1.Paid monthly utility bill. 2.Purchased.
10 Views
View Answer
COMPLETION STATEMENTS               259.An _______________ is an individual accounting record of increases and decreases in specific assets, liabilities, and stockholders’ equity items.               260.The act of entering an amount on the left side of an account is called _______________ the account, and making an entry on the right side is called _________________.
13 Views
View Answer
Ex. 234 A tabular analysis of the transactions made during August 2012 by Mazzone Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained.                                    Assets               =         Liab.+                  Stockholders' Equity         Retained Earnings Cash + A/R + Supp. + Equip = Accts Pay Com. Stock + Rev. - Exp. - Div. 1. +$30,000 +$30,000 Com. Stock 2.     –1,000 +$5,000 +$4,000 3.        –750 +$750 4.    .
9 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*