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Study Resources (Accounting)

101.Unearned rent, representing rent for the next six months' occupancy, would be reported on the landlord's balance sheet as a(n) A.asset B.liability C.capital account D.revenue 102.Accrued expenses are ordinarily reported on the balance sheet as A.assets B.liabilities C.fixed assets D.prepaid expenses 103.Fees receivable would appear on the balance sheet as a(n) A.asset B.liability C.fixed asset D.unearned revenue 104.The general term used to indicate delaying the.
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167.Indicate whether the following error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. 168.Under the accrual basis, some accounts in the ledger require.
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156.The balances for the accounts listed below appear in the Adjusted Trial balance columns of the end-of-period spreadsheet (work sheet). Indicate whether each balance should be extended to an Income Statement column or (b) a Balance Sheet column. 1. Dobson, Capital 2. Dobson, Drawing 3. Depreciation Expense 4. Accumulated Depreciation 5. Fees earned 6. Unearned Fees 7..
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135.A one-year insurance policy was purchased on June 1, 2011 for $1,500. The adjusting entry on December 31, 2011 would be: Date Description Post Ref Debit Credit 136.Depreciation on Office Equipment is $3,300. The adjusting entry on December 31, 2011 would be: Date Description Post Ref Debit Credit 137.A one-year insurance policy was purchased on October 1, 2011 for.
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75.In the accounting cycle, the last step is A.preparing the financial statements B.journalizing and posting the adjusting entries C.preparing a post-closing trial balance D.journalizing and posting the closing entries 76.During the end-of-period processing which of the following best describes the logical order of this process A.Preparation of adjustments, adjusted trial balance, financial statements B.Preparation of Income Statement,.
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71.Which of the following is considered to be unearned revenue? A.Concert tickets sold for tonight’s performance. B.Concert tickets sold yesterday on credit. C.Concert tickets that were not sold for the current performance. D.Concert tickets sold for next month’s performance. 72.Which of the following is an example of accrued revenue? A.Swimming pool cleaning that has been paid.
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156.Salaries of $6,400 are paid for a five-day week on Friday. Prepare the adjusting journal entry that is required if the month ends on Thursday. 157.Accrued salaries of $600 owed to employees for December 29, 30, and 31 are not taken into consideration in preparing the financial statements for the year.
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184.Complete the missing items in the following chart: Prepaid Expenses Examples Adjusting Entry Financial Statement Impact if Adjusting Entry is Omitted Supplies, (a) Dr. Expense Cr. Asset Income Statement: Revenues: No effect Expenses: Understated Net income: (b) Balance Sheet: Assets: (c) Liabilities: (d) Owner’s equity: Overstated Unearned Revenues Examples Adjusting Entry Financial Statement Impact if Adjusting Entry is Omitted Unearned Rent, (e) (f) Income Statement: Revenues:.
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178.Prepare the December 31 adjusting entries for the following transactions. Omit explanations. 1. Fees accrued but unbilled total $4,500. 2. The supplies account balance on December 31 is $5,250. Supplies on hand are $1,015. 3. Wages accrued but not paid are $3,500. 4. Depreciation of office equipment is $2,200. 5. Rent expired during year, $7,800. Date Description Post.
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172.Bob Evans owns a business, Beachside Realty, that rents condominiums and furnishings. Below is the adjusted trial balance at December 31, 2010. Debit Credit Cash $ 1,500 Accounts receivable 2,000 Interest receivable 100 Prepaid insurance 1,600 Notes receivable (long-term) 2,800 Equipment 15,000 Accumulated depreciation $3,000 Accounts payable 2,400 Accrued expenses payable 3,920 Income taxes payable 2,700 Unearned rent fees 500 Bob Evans, Capital 7,700 Bob Evans, Drawing 2,000 Rent fees earned 37,000 Furniture rental revenue 1,200 Interest revenue 100 Wages expense 19,000 Depreciation expense 1,800 Utilities expense 320 Insurance expense 700 Maintenance.
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51.The unadjusted, adjusted, and final trial balances are prepared during the accounting cycle of a period. 52.Any twelve-month accounting period adopted by a company is known as its fiscal year. 53.A fiscal year that ends when business activities have reached their lowest point is called the natural business year. 54.All companies must use.
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175.On December 15th, Great Designs Company hired an independent contractor for a project. The contractor completed the project on December 29th and submitted an invoice for $2,425 which was due on January 15th. (a) Prepare the journal entries necessary to record these transactions. (b) Explain why you prepared this/these journal entries. 176.On November.
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131.Explain the difference between accrual basis accounting and cash basis accounting. 132.Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry. 1. Cash 2. Prepaid Expenses 3. Depreciation Expense 4. Accounts Payable 5. Accumulated Depreciation 6. Equipment 133.Classify the following items as: (1) prepaid expense, (2).
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21.Deferrals are recorded transactions that delay the recognition of an expense or revenue. 22.Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded. 23.Unearned revenue is a liability. 24.The systematic allocation of land's cost to expense is called depreciation. 25.The difference.
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11.The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings. 12.Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called.
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121.The net income reported on the income statement is $85,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $800. Net income, as corrected, is A.$84,200 B.$85,000 C.$82,800 D.$82,000 122.At the end of the fiscal year, the usual adjusting entry to Prepaid.
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81.A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on Tuesday is A.debit Salaries Payable, $8,000; credit Cash, $8,000 B.debit Salary Expense, $8,000; credit Drawing, $8,000 C.debit Salary Expense, $8,000; credit Salaries Payable,.
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61.Deferred revenue is revenue that is A.earned and the cash has been received B.earned but the cash has not been received C.not earned and the cash has not been received D.not earned but the cash has been received 62.Adjusting entries are A.the same as correcting entries B.needed to bring accounts up to date and match revenue and.
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1.After analyzing transactions, the next step would be to post the transactions in the ledger. 2.The most important output of the accounting cycle is the financial statements. 3.The work sheet is not considered a part of the formal accounting records. 4.Cross-referencing is useful in assuring that the debits and credits are in balance. 5.When.
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140.DogMart Company records depreciation to Office Equipment and Production Equipment. Depreciation for the period ending December 31 is $1,400 for Office Equipment and $2,650 for Production Equipment. Prepare two entries to record the Office Equipment and Production Equipment depreciation. 141.On March 1, a business paid $3,600 for a twelve month liability.
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125.Use the following worksheet to answer the following questions. Finley Company Worksheet For the Year Ended December 31, 2010 Adjusted Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debit Credit Debit Credit Cash 48,000 48,000 Accounts Receivable 18,000 18,000 Supplies 6,000 6,000 Equipment 57,000 57,000 Accumulated Depr-Equip 18,000 18,000 Accounts Payable 30,000 30,000 Wages Payable 6,000 6,000 C. Finley, Capital 33,000 33,000 C. Finley, Drawing 3,000 3,000 Fees Earned 141,000 141,000 Wages Expense 63,000 63,000 Rent Expense 18,000 18,000 Depreciation Expense 15,000 15,000 Totals 228,000 228,000 96,000 141,000 132,000 87,000 Net Income (Loss) 45,000 45,000 141,000 141,000 132,000 132,000 Based on the preceding trial balance, the entry to close C. Finley, Drawing would be: A.debit C..
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105.After posting the second closing entry to the income summary account, the balance will be equal to A.zero. B.owner’s equity. C.revenues for the period D.the net income or (loss) for the period. 106.What is the last account that should be listed in the Post Closing Trial Balance? A.Income Summary B.Capital account C.Cash D.Fees Earned 107.Which of the following account groups.
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163.Prior to adjustment at August 31, 2010, Salary Expense has a debit balance of $298,500. Salaries owed but not paid as of the same date total $2,700. Present the entries to record the following: (1) Accrued salaries as of August 31. (2) Closing of Salary Expense as of August 31. 164.The following are all the steps.
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163.Given the following account balances for Garry’s Tree Service, prepare a trial balance. Cash $30,000 Supplies 1,000 Accounts Payable 8,000 Garry Ryan, Capital 36,800 Wage Expense 2,000 Machinery 24,000 Wages Payable 3,600 Service Revenue 22,500 Rent Expense 10,000 Unearned Revenue 4,000 Accumulated Depreciation - Machinery 7,600 Prepaid Rent 12,200 Garry Ryan, Drawing 3,300 164.List the four basic types of accounts that require adjusting entries and give an example of each. 165.For the year ending.
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181.On April 30, a business estimates depreciation on equipment used during the first year of operations to be $2,900. (a) Journalize the adjusting entry required as of April 30. (b) If the adjusting entry in (a) were omitted, which items would be erroneously stated on (1) the income statement for.
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149.The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 of premiums paid during the year. Journalize the adjusting entry required at the end of the year assuming the amount of unexpired insurance related to future periods is $4,100. 150.The balance in the unearned fees account,.
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135.Which one of the steps below is not aided by the preparation of the work sheet? A.preparing the adjusted trial balance B.posting to the general ledger C.preparing the financial statements D.preparing the closing entries 136.A work sheet includes columns for A.adjusting entries B.closing entries C.reversing entries D.adjusting and closing entries 137.When a work sheet is complete, the adjustment columns should.
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171.Hakik Enterprises offers rug cleaning services to business clients. Below are the adjustments data for the year ended July 31, 2010. REQUIRED: Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form. Adjustments: a) The equipment is estimated to last for 5 years with no.
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41.A post-closing trial balance should be prepared before the financial statements are prepared. 42.Assets, liabilities, and owner’s capital are real accounts and do not get closed at the end of the period. 43.The income summary account is also known as the clearing account. 44.All income statement accounts will be closed at the end.
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145.Which of the accounts below would appear in the Balance Sheet columns of the work sheet? A.Service Revenue B.Prepaid Rent C.Supplies Expense D.None are correct 146.The work sheet at the end of July has $5,350 in the Balance Sheet credit column for Accumulated Depreciation. The work sheet at the end of August has $6,700 in.
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185.Two income statements for Debra’s Design Services are shown below: Debra’s Design Services Income Statements For the Years Ended December 31, 2012 and 2011 2012 2011 Fees earned $765,340 $696,520 Operating expenses: Wages expense 254,000 214,600 Rent expense 120,000 108,000 Supplies expense 76,500 98,715 Miscellaneous expense __11,680 16,420 Total operating expenses $462,180 $437,735 Net income $303,160 $258,785 (a) Prepare a vertical analysis of Debra’s Design Services income.
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161.Listed below are accounts to use for transactions (a) through (j), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box. 1. Cash 2. Accounts Receivable 3. Office Supplies 4. Land 5. Interest.
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173.On November 1st, clients of Great Designs Company prepaid $2,800 for services to be provided in the future at a rate of $70 per hour. (a) Journalize the receipt of this cash. (b) As of November 30th, Great Designs shows that 16 hours of services have been provided on this agreement. Prepare.
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111.What effect will this adjustment have on the accounting records? Unearned Revenue 3,300 Fees earned 3,300 A.Increase net income B.Increase revenues reported for the period C.Decrease liabilities D.All of these are true. 112.What effect will this adjusting journal entry have on the accounting records? Supplies Expense 267 Supplies 267 A.Increase income B.Decrease net income C.Decrease expenses D.Increase assets 113.What effect will the following adjusting journal entry.
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21.Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets. 22.Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets. 23.Accrued expenses are ordinarily listed on the balance sheet as current.
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31.The income summary account is closed to the owner's capital account. 32.The accumulated depreciation account is closed to the income summary account. 33.The drawing account is closed to the income summary account. 34.The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance. 35.Entries required to close.
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159.The following accounts appear in an adjusted trial balance of Brock Pool Service Company. Indicate whether each account would be reported in the (a) current asset, (b) property, plant, and equipment, (c) current liabilities, (d) long-term liability, or (e) owner’s equity section of the December 31, 2010, balance sheet of.
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85.The income statement is prepared from: A.the adjusted trial balance. B.the income statement columns of the work sheet. C.either the adjusted trial balance or the income statement columns of the work sheet. D.both the adjusted trial balance and the income statement columns of the work sheet. 86.Round-tripping is when A.a selling company sells to a.
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95.The Statement of Owner’s Equity begins with the beginning balance followed by A.plus Net Income (loss) less withdrawals B.plus Net Income (loss) plus investments C.plus investments less withdrawals D.plus investments plus Net Income (loss) less withdrawals 96.The Income Statement will include the following accounts A.Revenues less Expenses (ordered largest to smallest amount) with Miscellaneous Expense listed.
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143.On January 1st, Power House Co. prepays the year’s rent, $10,140 to its landlord. Prepare the journal entry by recording the prepayment to an asset account. 144.Requirement: Make the journal entries for both of the following: (a) On December 1, $12,500 was received for a service contract to be performed from December.
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91.The type of account and normal balance of Unearned Rent is A.revenue, credit B.expense, debit C.liability, credit D.liability, debit 92.Data for an adjusting entry described as "accrued wages, $2,020" means to debit A.Wages Expense and credit Wages Payable B.Wages Payable and credit Wages Expense C.Accounts Receivable and credit Wages Expense D.Drawing and credit Wages Payable 93.Supplies are recorded as assets.
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165.If working papers are not considered part of the formal accounting records, then why are they used? 166.Explain how net income or loss is determined by using the work sheet. 167.You evaluate loan requests as part of your job at Beach Front National Bank. One loan request you received is from Surfer.
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51.The revenue recognition concept A.is in not in conflict with the cash method of accounting B.determines when revenue is credited to a revenue account C.states that revenue is not recorded until the cash is received D.controls all revenue reporting for the cash basis of accounting 52.The matching concept A.addresses the relationship between the journal and the.
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171.Explain the difference between A) Accrued revenues and unearned revenues. B) Accrued expenses and prepaid expenses. C) Give an example of each. 172.For each of the following, journalize the necessary adjusting entry: (a) A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry.
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115.The entry to close the appropriate insurance account at the end of the accounting period is A.debit Income Summary; credit Prepaid Insurance B.debit Prepaid Insurance; credit Income Summary C.debit Insurance Expense; credit Income Summary D.debit Income Summary; credit Insurance Expense 116.Which of the following accounts ordinarily appears in the post-closing trial balance? A.Fees Earned B.Supplies Expense C.Zane White,.
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183.Jacki Lopez started JVL Consulting on January 1, 2011. The following are the account balances at the end of the first month of business, before adjusting entries were recorded: Accounts Payable $350 Accounts Receivable 750 Cash 4,325 Consulting Revenue 4,925 Equipment 7,000 Jacki Lopez, Capital 15,000 Jacki Lopez, Drawing 1,400 Prepaid Rent 6,000 Supplies 800 Adjustment data: Supplies on hand at the end of the.
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