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Study Resources (Accounting)

81.The statement of owner’s equity should be prepared a.before the income statement and after the balance sheet b.before the income statement and balance sheet c.after the income statement and balance sheet d.after the income statement and before the balance sheet 82.The income statement should be prepared a.before the statement of owner’s equity and balance sheet b.after the.
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153.    After all adjustments have been made, but before the accounts have been closed, the following balances weretaken from the ledger of Ramona’s Designs: Accounts Payable $  27,600 Rent Expense $  32,700 Accounts Receivable 64,500 Salary Expense 41,390 Accumulated Depreciation 73,325 Salaries Payable 8,150 Cash 17,150 Service Revenue 186,000 Depreciation Expense 13,500 Supplies 1,500 Equipment 165,000 Supplies Expense 2,500 Insurance Expense 2,510 Ramona Cross, Capital 99,950 Prepaid Insurance 6,275 Ramona Cross, Drawing 48,000 Journalize the entries to close the appropriate accounts. 154.  On the.
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135.  On December 31, a business estimates depreciation on equipment used during the first year of operations to be$2,900. (a) Journalize the adjusting entry required on December 31. (b) If the adjusting entry in (a) were omitted,which items would be erroneously stated on (1) the income statement for the year.
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31.Entries required to close the balances of the temporary accounts at the end of the period are called final entries. a.True b.False 32.Journalizing and posting closing entries must be completed before financial statements can be prepared. a.True b.False 33.During the closing process, some balance sheet accounts are closed and end the period with a zero balance. a.True b.False 34.Closing.
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21.After analyzing transactions, the next step would be to post the transactions in the ledger. a.True b.False 22.Examples of temporary accounts are supplies and prepaid expenses which are in the ledger for just a short timebefore they expire. a.True b.False 23.Accumulated Depreciation is a permanent account. a.True b.False 24.The drawing account is a temporary account. a.True b.False 25.The balance sheet accounts are.
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153. Reconstruct adjusting and closing entries for the month ended September 30 from the T-accounts below. Prepaid Insurance ? Accounts Receivable ? Unearned Revenues ? Wages Payable 1,350 1,250 1,050 385 130 ? 275 235 385 1,220 1,525 815 Diane Lin,Capital ? Diane Lin,Drawing ? Income Summary ? Fees Earned 7,000 2,400 5,510 5,000 580 2,400 6,090 ? ? ? 275 2,400 ? 0 ? ? 580 ? ? 235 4,020 ? ? ? ? ? 0? ? 5,510 0? ? ? ? ? ? ? ? ? ? ? ? Wages Expense ? Rent Expense ? Insurance Expense ? Utilities Expense 3,600 ? ? 1,880 ? ? 130 ? 95 385 ? 1,880 ? 130 ? ? 95 ? 3,985 ? 0 ? ? 0 ? ? 0 ? 0 ? ? ? ? ? ? ? ? ? ? 154.    .
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61.A work sheet heading is dated for a period of time. a.True b.False 62.On the work sheet, the capital and drawing account balances are extended to the Balance Sheet columns. a.True b.False 63.After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, thedifference between the initial totals of the.
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Match the type of account (a - e) with the business transactions that follow. Prepaid expense Accrued expense Unearned revenue Accrued revenue None of these 136.  Services provided that have not been recorded. 137.  Paid for one year’s insurance policy. 138.  Retainer fee received from a client for future legal representation. 139.  Annual property taxes that are paid at.
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153.    The following balance sheet contains errors. Mark Brock Services Co. Balance Sheet For the Year Ended December 31 ? ? ? ? ? Assets ? ? Liabilities ? Current assets: ? ? Current liabilities: ? Cash $  7,170 ? Accounts receivable $  10,000 ?Accounts payable ?7,500 ? Accum. depr.—building ?12,525 ?Supplies ?2,590 ? Accum. depr.—equipment ?7,340 Prepaid insurance 800 ? Net income     11,500 Land   24,000 ? ? ? Total current assets ?$   42,060 Total liabilities $  41,365 ? ? ? ? ? ? ? ? Owner’s Equity ? Property, plant, and equipment: ? ? ? ? Wages payable ? $    1,500 Building $43,700 ? Brock Morton, capital     88,645 Equipment   29,250 ? Total owner’s equity 90,145 Total property, plant, and equipment ? ?    .
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153.  Robert Evans owns a business, Beachside Realty that rents condominiums and furnishings.  Below is the adjustedtrial balance at December 31. 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 Robert Evans, Capital 7,700 Robert 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 Expense 9,000 Income Tax Expense .
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153.  You have just accepted your first job out of college, which requires you to evaluate loan requests at EastwoodNational Bank. The first loan request you receive is from Richard Enterprises, a small proprietorship.  RichardTracy, the owner, is requesting $105,000 and brings you the following trial balance (or statement of.
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135.  Bloom's Company pays bi-weekly salaries of $40,000 every other Friday for a ten-day period ending on thatday.  The last payday of December is Friday, December 27.  Assuming the next pay period begins on Monday,December 30, journalize the adjusting entry necessary at the end of the fiscal period (December 31). Date Description PostRef Debit Credit 136. .
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131.The end-of-period spreadsheet a.is an integral part of the accounting cycle b.eliminates the need to rewrite the financial statements c.is a working paper that is required d.is used to summarize account balances and adjustments for the financial statements 132.Which one of the steps below is notaided by the preparation of the end-of-period spreadsheet? a.preparing the adjusted.
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153.     The following revenue and expense account balances were taken from the Income Statement columns of the worksheet for Fraser Services Co. for December 31: Depreciation Expense $  4,950 Insurance Expense 2,900 Miscellaneous Expense 1,200 Rent Expense 24,000 Service Revenue 92,500 Supplies Expense 3,150 Utilities Expense 5,000 Wages Expense 63,750 Prepare an income statement. 154.    .
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135.  Journalize the six entries to adjust the accounts at December 31.  (Hint: One of the accounts was affected by twodifferent adjusting entries). Unadjusted Trial Balance Adjusted Trial Balance Debit Balances Credit Balances Debit Balances Credit Balances Cash 5,000 5,000 Accounts Receivable 32,000 32,600 Supplies 3,600 100 Prepaid Insurance 4,000 1,400 Equipment 11,000 11,000 Accumulated Depreciation 1,700 Wages Payable 2,000 Unearned Fees 8,900 3,500 Ann Cole, Capital 22,000 22,000 Fees Earned 69,000 75,000 Wages Expense 44,300 46,300 Supplies Expense 3,500 Insurance Expense 2,600 Depreciation Expense 1,700 Total 99,900 99,900 104,200 104,200 136.  .
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111.The post-closing trial balance differs from the adjusted trial balance in that it does not a.take into account closing entries b.take into account adjusting entries c.include balance sheet accounts d.include income statement accounts 112.The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation$  3,200 Fees Earned17,400 Depreciation Expense1,300 Insurance Expense400 Prepaid Insurance4,800 Supplies900 Supplies Expense3,800 Net.
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153. The following is the adjusted trial balance for Nadia Company. Nadia Company Adjusted Trial Balance December 31 Cash 5,130 Accounts Receivable 3,300 Prepaid Expenses 420 Equipment 12,400 Accumulated Depreciation 2,200 Accounts Payable 700 Notes Payable (due on June 30) 3,070 Nadia Porter, Capital 13,000 Nadia Porter, Drawing 700 Fees Earned 10,930 Wages Expense 2,450 Rent Expense 1,900 Utilities Expense 1,475 Depreciation Expense 1,150 Miscellaneous Expense 975   Totals 29,900 29,900 Prepare an income statement, balance sheet, and statement of owner’s equity. Assume that the capital.
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1.Cross-referencing is useful in assuring that the debits and credits are in balance. a.True b.False 2.When accounts do notappear on the unadjusted trial balance but are needed to post adjustments, they are simplyadded to the account title column. a.True b.False 3.Once the adjusted trial balance is in balance, the flow of accounts will now go into.
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91.The classified balance sheet will show which asset subsections? a.current assets and other equity b.current assets and property, plant, and equipment c.current liabilities and short-term assets d.other revenues and property, plant and equipment 92.The classified balance sheet will show which liability subsections? a.current liabilities and long-term liabilities b.current liabilities and other liabilities c.other liabilities and long-term liabilities d.present liabilities.
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135.  Jordon James started JJJ Consulting on January 1.  The following are the account balances at the end of the firstmonth of business, before adjusting entries were recorded: Accounts Payable $300 Accounts Receivable 750 Cash 6,300 Consulting Revenue 4,925 Equipment 7,000 Jordon James, Capital 15,000 Jordon James, Drawing 1,375 Prepaid Rent 4,000 Supplies 800 Adjustment data: Supplies on hand at the end of the month: $200Unbilled consulting revenue: $700 Rent expense.
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153.    The following accounts appear in an adjusted trial balance of Blaine Auto Service Company.  Indicate whethereach account would be reported in the (a) current assets, (b) property, plant, and equipment, (c) current liabilities,(d) long-term liabilities, or (e) owner’s equity section of the December 31 balance sheet of Blaine Auto.
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121.The entry to close C. Finley, Drawing would be a.debit C. Finley, Capital, $3,000; credit C. Finley, Drawing, $3,000 b.debit C. Finley, Capital, $12,000; credit C. Finley, Drawing, $12,000 c.debit C. Finley, Drawing, $3,000; credit C. Finley, Capital, $3,000 d.debit C. Finley, Drawing, $12,000; credit C. Finley, Capital, $12,000 122.The ending balance in C. Finley,.
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153. The following is the adjusted trial balance for Miller Company. Miller Company Adjusted Trial Balance December 31 Cash 8,130 Accounts Receivable 3,300 Prepaid Expenses 2,750 Equipment 10,400 Accumulated Depreciation 2,200 Accounts Payable 2,700 Notes Payable 1,000 Diane Miller, Capital 11,200 Diane Miller, Drawing 4,870 Fees Earned 36,600 Wages Expense 12,450 Rent Expense 4,900 Utilities Expense 3,475 Depreciation Expense 2,150 Miscellaneous Expense 1,275 Totals 53,700 53,700 Prepare closing entries and the post-closing trial balance. 154.  .
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153.   Prepare closing entries from the following end-of-period spreadsheet. AustinEnterprises End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance Income Statement ?Balance Sheet Account Title Debit Credit Debit Credit Debit Credit Cash 26,500 26,500 Accounts Receivable 7,000 7,000 Supplies 1,000 1,000 Equipment 18,500 18,500 Accumulated Depr. 5,000 5,000 Accounts Payable 11,000 11,000 Wages Payable 1,000 1,000 Don Austin, Capital 8,000 8,000 Don Austin, Drawing 2,000 2,000 Fees Earned 59,500 59,500 Wages Expense 19,000 19,000 Rent Expense 7,000 7,000 Depreciation Expense 3,500   3,500   Totals 84,500 84,500 29,500 59,500 55,000 25,000 Net.
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135.  Two income statements for Midnight Enterprises are shown below: Midnight  EnterprisesIncome Statement For Year 1 and Year 2, Ended December 31      Year 2          Year 1 Fees earned $674,350 $520,600 Operating expenses 472,045 338,390 Operating income $202,305 $182,210 (a) Prepare a vertical analysis of Midnight Enterprises’ income statements. (b) Does the vertical analysis indicate a favorable or unfavorable trend? 136. .
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153.  Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings.  Below is the adjustedtrial balance at December 31. 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 Robert Evans, Capital 7,700 Robert 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.
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153.  The following adjusted trial balance is the result of the adjustments made at the end of the month of March for ErikMartin Company. Use these adjusted values to journalize the closing entries for Erik Martin Company. Cash 24,750 Accounts Receivable 5,750 Office Supplies 3,525 Store Supplies 4,785 Machinery 9,750 Accumulated Depreciation 2,150 Accounts Payable 3,550 Notes Payable 7,500 Erik Martin, Capital 19,725 Erik Martin, Drawing 6,250 Service Revenue 36,500 Wages Expense 6,425 Office Supplies.
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153.    The following data were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April30, for Abigail Company: Accumulated Depreciation $42,400 Prepaid Rent 6,800 Supplies 850 Unearned Fees 7,310 Trucks 49,300 Cash 3,400 Abigail, Capital ? Prepare a classified balance sheet. 154.    .
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153.    Indicate whether each of the following would be reported in the section of financial statements identified as (a)current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense: (1) Truck (2) Accumulated depreciation (3) Telephone expense (4) Fees earned (5) Wages payable (6) Prepaid insurance (7) Office supplies (8) Dining expense (9) Unearned rent 154. .
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135.  Prepare the required entries for the following transactions: (a)             Austin Company pays daily wages of $645 (Monday - Friday). Paydays are every otherFriday. Prepare the Monday, January 31 adjusting entry assuming that the last paydaywas Friday, January 21. (b)             Prepare the journal entry to record the Austin Company’s payroll on Friday,.
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Identify the effect (a - h) that omitting each of the following items would have on the balance sheet. Assets and owner’s equity overstated Assets and owner’s equity understated Assets overstated and owner’s equity understated Assets understated and owner’s equity overstated Liabilities and owner’s equity overstated Liabilities and owner’s equity understated Liabilities overstated and owner’s equity understated Liabilities.
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153.  Austin Enterprises was started by Daniel Austin.  During the current year, Daniel Austininvested $8,000 in thebusiness. Based on the following end­of­year spreadsheet, prepare an income statement, statement of owner’sequity, and balance sheet for Austin Enterprises for the year ended December 31. Austin Enterprises End-of-Period Spreadsheet For the Year Ended December 31 ? Adjusted Trial.
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153.  Selected T accounts appear below for the current year for Linda's Surveying Services. Linda Winter, Capital LindaWinter, Drawing 12/31 25,000 1/1 20,000 3/31 12,000 12/31 25,000 12/31 48,000 12/22 13,000 Income Summary 12/31 19,000 12/31 67,000 12/31 48,000 Prepare a statement of owner's equity. 154.    List and describe the purpose of the four closing entries. 155.  .
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11.Liabilities that will be due within one year or less and that are to be paid out of current assets are called currentliabilities. a.True b.False 12.The amount of the net income for a period appears on both the income statement and the balance sheet for thatperiod. a.True b.False 13.Accrued taxes payable are generally reported on the.
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135.  Two income statements for Danielle’s Design Services are shown below: Danielle’s Design Services Income  Statements For Years 1 and 2 Ending December 31 Year 2 Year 1      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 Danielle’s Design Services income statements. (b)    What types of trends are.
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153.  The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheetcolumns with a debit total of $630,430 and a credit total of $614,210.  This is before the amount for net income ornet loss has been included.  In preparing the income statement from the end-of-period spreadsheet,.
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153.  Reconstruct the adjusting and closing entries from the following. PrepaidInsurance AccountsReceivable UnearnedRevenues Wages Payable 1,200 6,000 1,350     530 200 1,500     435     530 1,000 7,500 915 Madison Cox,Capital Madison Cox,Drawing IncomeSummary Fees Earned 7,000 2,100 9,935 8,000 5,280     2,100 4,655 1,500 2,100       0 5,280      435 10,180 0 9,935 0 Wages Expense Rent Expense InsuranceExpense UtilitiesExpense 2,600 1,145 200 180 530 1,145     200    180 3,130 0 0 0 0 154. .
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41.Accounts reported on the balance sheet that are carried forward from year to year are known as permanentaccounts. a.True b.False 42.Balance sheet accounts are notconsidered real accounts. a.True b.False 43.Real accounts are notpermanent accounts. a.True b.False 44.It is notnecessary to post the closing entries to the general ledger. a.True b.False 45.The closing process is sometimes referred to as closing the books. a.True b.False 46.Once an.
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153.  Robert Evans owns a business, Beachside Realty, that rents condominiums and furnishings.  Below is the adjustedtrial balance at December 31. 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 Robert Evans, Capital 7,700 Robert 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 Expense 9,000 Income Tax.
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135.  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 onthat day. Journalize the necessary adjusting entry at the end of the fiscal period,assuming that the fiscal period ends (1) on Tuesday, (2) on Wednesday. (b)        .
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51.The unadjusted, adjusted, and final trial balances are prepared during the accounting cycle of a period. a.True b.False 52.Any twelve-month accounting period adopted by a company is known as its fiscal year. a.True b.False 53.A fiscal year that ends when business activities have reached their lowest point is called the natural business year. a.True b.False 54.All companies must use.
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153.    Indicate whether each of the following would be reported in the financial statements as a(n) (a) current asset, (b)current liability, (c) revenue, or (d) expense: (1) Supplies (5) Supplies Expense (2) Unearned Fees (6) Prepaid Insurance (3) Prepaid Advertising (7) Accounts Payable (4) Advertising Expense (8) Fees Earned 154.    The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet forApril.
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71.What is the major difference between the unadjusted trial balance and the adjusted trial balance? a.The adjusted trial balance will show the net income (loss) as an additional account. b.Unlike the adjusted trial balance, the unadjusted trial balance will continue with the end-of-period processingeven if it is not in balance. c.The adjusted trial.
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135.  Complete the missing items in the Summary of Adjustments chart: Prepaid  Expenses Examples Adjusting Entry Financial Statement Impactif Adjusting Entry is Omitted Supplies, (a) Dr. ExpenseCr. Asset Income Statement:Revenues: No effectExpenses: UnderstatedNet income:  (b) Balance Sheet:Assets:(c)Liabilities:   (d) Owner’s equity:  Overstated Unearned  Revenues Examples Adjusting Entry Financial Statement Impact ifAdjusting Entry is Omitted Unearned   Rent, (e) (f) Income Statement:Revenues: (g)Expenses: No effectNet income:  (h) Balance Sheet:Assets:(i) Liabilities:   Overstated Owner’s equity:  (j) Accrued .
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153.    Identify which of the following accounts should be closed with a debit or a credit to Income Summary at the end ofthe fiscal year.  If it is not closed to Income Summary, mark as n/a. 1.       Utilities Payable 2.       Utilities Expense 3.       Supplies 4.       Supplies Expense 5.       Fees Earned 6.       Unearned Fees 7.       Accounts Receivable 8.       Jason.
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101.Which of the following account groups are nominal accounts? a.Cash, Dividends, Wages Payable b.Prepaid Insurance, Equipment, Fees Earned c.Common Stock, Dividends, Income Summary d.Rent Revenue, Fees Earned, Miscellaneous Expense 102.There are four closing entries. The first one is to close revenues, the second one is to close expenses, the third oneis to close              , and.
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135.  On November 15th, Great Designs Company purchased an advertising campaign for the month of December.Great Designs paid cash of $2,700 in advance.  The advertising campaign ran in December. (a)    Prepare all necessary journal entries for the advertising campaign for November and December . (b)    Explain why you prepared this/these journal entries. 136. .
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135.  Prepare the December 31 adjusting entries for the following transactions.  Omit explanations. 1.    Fees accrued but unbilled total $6,300. 2.    The supplies account balance on December 31 is $4,750.  Supplies on hand are $960. 3.    Wages accrued but not paid are $2,700. 4.    Depreciation of office equipment is $1,650. 5.   Rent expired during year,.
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141.Which of the accounts below would notappear in the balance sheet columns of the end-of-period spreadsheet? a.Terry James, Drawing b.Service Revenue c.Unearned Revenue d.Terry James, Drawing and Unearned Revenue 142.Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet? a.Consulting Revenue b.Prepaid Insurance c.Rent Expense d.Fees Earned 143.Daniel's end-of-period spreadsheet at the end of July.
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