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
4 - 1 Completing the Accounting Cycle EXERCISES Ex. 188 The worksheet for Montoya Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should be extended by placing a.
10 Views
View Answer
4 - 1 Completing the Accounting Cycle 138.The most important information needed to determine if companies can pay their current obligations is the a.net income for this year. b.projected net income for next year. c.relationship between current assets and current liabilities. d.relationship between short-term and long-term liabilities. 139.The following items are taken from the financial statements of.
12 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 191 The account balances appearing on the trial balance (below) were taken from the general ledger of Irick's Copy Shop at September 30. Additional information for the month of September which has not yet been recorded in the accounts is as follows: (a)A physical count of supplies.
8 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 203 Indicate the proper sequence of the steps in the accounting cycle by placing numbers 1-8 in the blank spaces.____a.Analyze business transactions.____b.Journalize and post adjusting entries.____c.Journalize and post closing entries.____d.Journalize the transactions.____e.Prepare a post-closing trial balance.____f.Prepare a trial balance.____g.Prepare financial statements.____h.Post to ledger accounts. Ex. 204 Prepare.
8 Views
View Answer
4 - 1 Completing the Accounting Cycle BRIEF EXERCISES BE 176 Use the following income statement for the year 2014 for Belle Company to prepare entries to close the revenue and expense accounts for the company. Service revenue$85,000 Expenses: Salaries and Wages Expense$40,000 Rent Expense12,500 Advertising Expense    8,700 Total expenses  61,200 Net income (loss)$23,800 BE 177 Sebastien Company earned net income of $44,000.
12 Views
View Answer
4 - 1 Completing the Accounting Cycle S-A E  234(Ethics) Under Protection provides underground storage facilities for companies desiring off-site storage of sensitive documents, computer records, and other items. They have developed a sophisticated surveillance and security system which they initially used in their own facilities, and have recently started to market elsewhere.
14 Views
View Answer
3 - 1 Adjusting the Accounts SHORT-ANSWER ESSAY QUESTIONS S-A E  258 The income statement is an important financial statement used by individuals who are interested in the operations of a business enterprise. Explain how the time period assumption and the revenue recognition and expense recognition principles provide guidance to accountants in preparing an.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle 98.The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is a.analyzing transactions. b.journalizing and posting adjusting entries. c.preparing a post-closing trial balance. d.posting to ledger accounts. 99.Which one of the following is an optional step in the accounting cycle of a business enterprise? a.Analyze.
10 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 194 These financial statement items are for Rugen Company at year-end, July 31, 2014. Salaries and wages payable$  2,980Notes payable (long-term)$  3,000 Salaries and wages expense45,700Cash5,200 Utilities expense21,100Accounts receivable9,780 Equipment38,000Accumulated depreciation6,000 Accounts payable4,100Owner’s Drawings4,000 Service revenue57,200Depreciation expense4,000 Rent revenue6,500Owner’s capital (beginning48,000 of the year) Instructions (a)Prepare an income statement and an owner's equity statement for.
35 Views
View Answer
4 - 1 Completing the Accounting Cycle 128.An intangible asset a.does not have physical substance, yet often is very valuable. b.is worthless because it has no physical substance. c.is converted into a tangible asset during the operating cycle. d.cannot be classified on the balance sheet because it lacks physical substance. 129.Liabilities are generally classified on a balance.
13 Views
View Answer
4 - 1 Completing the Accounting Cycle 158.Which of the following is an optional step in the accounting cycle? a.Adjusting entries b.Closing entries c.Correcting entries d.Reversing entries 159.Which one of the following statements concerning the accounting cycle is incorrect? a.The accounting cycle includes journalizing transactions and posting to ledger accounts. b.The accounting cycle includes only one optional step. c.The steps.
14 Views
View Answer
4 - 1 Completing the Accounting Cycle TRUE-FALSE STATEMENTS 1.A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet. 2.If a worksheet is used, financial statements can be prepared before adjusting entries are journalized. 3.If total credits in the income statement columns of a worksheet exceed total.
24 Views
View Answer
3 - 1 Adjusting the Accounts MATCHING 257.Match the items below by entering the appropriate code letter in the space provided. A.Time period assumptionF.Accrued revenues B.Fiscal yearG.Depreciation C.Revenue recognition principleH.Accumulated depreciation D.Prepaid expensesI.Accrued expenses E.Expense recognition principleJ.Book value _____              1.A twelve month accounting period _____              2.Expenses paid before they are incurred _____              3.Cost less accumulated depreciation _____              4.Divides the economic life.
11 Views
View Answer
4 - 1 Completing the Accounting Cycle 21.An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a correcting entry because total assets will not be misstated. 22.In a corporation, Retained Earnings is a part of owners' equity. 23.A company's operating cycle and fiscal year are usually the.
11 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 195 Prepare the necessary closing entries based on the following selected accounts. Accumulated Depreciation $10,000Depreciation Expense4,000Owner’s Capital20,000Owner’s Drawings12,000Salaries and Wages Expense18,000Service Revenue31,000 Ex. 196 All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total.
8 Views
View Answer
4 - 1 Completing the Accounting Cycle 78.The income statement for the month of June, 2014 of Camera Obscura Enterprises contains the following information: Revenues$7,000 Expenses: Salaries and Wages Expense$3,000 Rent Expense1,500 Advertising Expense800 Supplies Expense300 Insurance Expense     100 Total expenses  5,700 Net income$1,300 The entry to close Income Summary to Owner’s, Capital includes a.a debit to Revenues for $7,000. b.credits to Expenses totalling.
12 Views
View Answer
4 - 1 Completing the Accounting Cycle 88.All of the following statements about the post-closing trial balance are correct except it a.shows that the accounting equation is in balance. b.provides evidence that the journalizing and posting of closing entries have been properly completed. c.contains only permanent accounts. d.proves that all transactions have been recorded. 89.A post-closing trial.
10 Views
View Answer
3 - 1 Adjusting the Accounts COMPLETION STATEMENTS               246.The ______________ assumption divides the economic life of a business into artificial time periods.               247.An accounting period that is one year in length is referred to as a ______________ year. 248.The ______________ principle gives accountants guidance as to when revenue is to be recorded.               249.In.
12 Views
View Answer
4 - 1 Completing the Accounting Cycle 168.Most companies that follow IFRS present balance sheet (statement of financial position) information in this order: a.current assets; investments; property, plant and equipment; intangible assets; current liabilities; long term liabilities; owners' equity. b.intangible assets; property, plant and equipment; investments; current assets; current liabilities; owners' equity; long term.
10 Views
View Answer
3 - 1 Adjusting the Accounts S-A E 261 The long-term liability section of Escovedo Company’s Balance Sheet includes the following accounts: Notes Payable $100,000 Mortgage Payable   250,000 Salaries and Wages Payable    75,000 Accumulated Depreciation  125,000 Total Long-Term Liabilities$550,000 Escovedo Company is an established company and does not experience any financial difficulties or have any cash flow problems. .
15 Views
View Answer
5 - 1 Accounting for Merchandising Operations 11.Sales Returns and Allowances and Sales Discounts are both designed to encourage customers to pay their accounts promptly. 12.To grant a customer a sales return, the seller credits Sales Returns and Allowances. 13.A company's unadjusted balance in Inventory will usually not agree with the actual amount of.
10 Views
View Answer
4 - 1 Completing the Accounting Cycle SHORT-ANSWER ESSAY QUESTIONS S-A E  229 A worksheet is an optional working tool used by accountants to facilitate the preparation of financial statements. Consider the steps followed in preparing a worksheet. How does the use of a worksheet assist the accountant. Could financial statements be prepared without.
8 Views
View Answer
4 - 1 Completing the Accounting Cycle 31.After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements. 32.To close net income to owner's capital, Income Summary is debited and Owner's Capital is credited. 33.In one closing entry, Owner's Drawings is credited and Income.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle 108.If errors occur in the recording process, they a.should be corrected as adjustments at the end of the period. b.should be corrected as soon as they are discovered. c.should be corrected when preparing closing entries. d.cannot be corrected until the next accounting period. 109.A correcting entry a.must involve one balance.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle 68.The most efficient way to accomplish closing entries is to a.credit the income summary account for each revenue account balance. b.debit the income summary account for each expense account balance. c.credit the owner's drawings balance directly to the income summary account. d.credit the income summary account for total revenues.
12 Views
View Answer
4 - 1 Completing the Accounting Cycle aEx. 215 Transaction and adjustment data for Doty Company for the calendar year end is as follows: 1.December 24 (initial salary entry): $12,000 of salaries earned between December 1 and December 24 are paid. 2.December 31 (adjusting entry): Salaries earned between December 25 and December 31 are $3,000..
8 Views
View Answer
3 - 1 Adjusting the Accounts Ex. 244 Yankee Hotel Foxtrot initiated operations on July 1, 2014. To manage the company officers and managers have requested monthly financial statements starting July 31, 2014. The adjusted trial balance amounts at July 31 are shown below. DebitsCredits Cash$ 7,680Accumulated Depreciation – Equipment              $  840 Accounts Receivable     810Notes Payable             .
34 Views
View Answer
4 - 1 Completing the Accounting Cycle BE 182 Prepare the necessary correcting entry for each of the following. a.A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash. b.A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a.
7 Views
View Answer
4 - 1 Completing the Accounting Cycle BE 186 The following lettered items represent a classification scheme for a balance sheet, and the numbered items represent accounts found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs. A.Current assetsE.Current liabilities B.Long-term investmentsF.Long-term liabilities C.Property, plant, and.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle 58.Closing entries are made a.in order to terminate the business as an operating entity. b.so that all assets, liabilities, and owner's capital accounts will have zero balances when the next accounting period starts. c.in order to transfer net income (or loss) and owner's drawings to the owner's capital.
10 Views
View Answer
4 - 1 Completing the Accounting Cycle 48.When using a worksheet, adjusting entries are journalized a.after the worksheet is completed and before financial statements are prepared. b.before the adjustments are entered on to the worksheet. c.after the worksheet is completed and after financial statements have been prepared. d.before the adjusted trial balance is extended to the.
11 Views
View Answer
4 - 1 Completing the Accounting Cycle 148.Which statement about long-term investments is not true? a.They will be held for more than one year. b.They are not currently used in the operation of the business. c.They include investments in stock of other companies and land held for future use. d.They can never include cash accounts. 149.What is.
10 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 192 The adjustments columns of the worksheet for Mandy Company are shown below.      Adjustments               Account Titles           DebitCredit Accounts Receivable800 Prepaid Insurance650 Accumulated Depreciation    770Salaries and Wages Payable1,200Service Revenue   800Salaries and Wages Expense1,200Insurance Expense650Depreciation Expense  770      3,4203,420 Ex. 192(Cont.) Instructions (a)Prepare the adjusting entries. (b)Assuming the adjusted trial balance amount for.
8 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 190 The worksheet for Gibler Rental Company appears below. Using the adjustment data below, complete the worksheet. Add any accounts that are necessary. Adjustment data: (a)Prepaid rent expired during August, $3. (b)Depreciation expense on equipment for the month of August, $8. (c)Supplies on hand on August 31 amounted to.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle COMPLETION STATEMENTS               216.The first step in preparing a worksheet is to prepare a ______________ from the general ledger accounts.               217.The account balances appearing in the adjusted trial balance columns are extended to the ______________ columns and the ______________ columns. 218.The process of transferring net income (or.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 208 Wakefield Company discovered the following errors made in January 2014. 1.A payment of salaries expense of $900 was debited to Equipment and credited to Cash, both for $900. 2.A collection of $2,000 from a client on account was debited to Cash $200 and credited to Service.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 199 The adjusted account balances of the Fitness Center at July 31 are as follows: AccountsAccount BalancesAccountsAccount Balances Cash$ 16,000Service Revenue$105,000 Accounts Receivable15,000Interest Revenue8,000 Supplies4,000Depreciation Expense27,000 Prepaid Insurance8,000Insurance Expense6,000 Buildings300,000Salaries and Wages Expense35,000 Accumulated Depreciation—Supplies Expense9,000   Buildings120,000Utilities Expense12,000 Accounts Payable19,000 Owner’s Capital195,000 Owner’s Drawings15,000 Instructions Prepare the end of the period closing entries for the Fitness Center. Ex..
8 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 212 The financial statement columns of the worksheet for Booer Company as of December 31, 2014 are as follows: BOOER COMPANY Worksheet For the Year Ended December 31, 2014   Income Statement        Balance Sheet  Accounts  Debit   Credit    Debit  Credit Cash8,000 Accounts Receivable26,000 Supplies4,500 Prepaid Insurance7,000 Equipment41,000 Accumulated Depreciation—Equipment4,800 Patents7,500 Accounts Payable22,200 Notes Payable (due 2018)20,000 Owner’s.
10 Views
View Answer
4 - 1 Completing the Accounting Cycle 118.The following information is for Sunny Day Real Estate: Sunny Day Real Estate Balance Sheet December 31, 2014 Cash$  25,000Accounts Payable$  60,000 Prepaid Insurance30,000Salaries and Wages Payable15,000 Accounts Receivable50,000Mortgage Payable   85,000 Inventory70,000Total Liabilities160,000 Land Held for Investment85,000 Land120,000 Building$100,000 Less AccumulatedOwner’s Capital  370,000 Depreciation(20,000)80,000 Trademark    70,000Total Liabilities and Total Assets$530,000Owner’s Equity$530,000 The total dollar amount of assets to be classified.
8 Views
View Answer
4 - 1 Completing the Accounting Cycle 11.Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure. 12.Closing the drawings account to Owner’s Capital is not necessary if net income is greater than owner's drawings during the period. 13.The owner's drawings account is a permanent account whose balance is.
11 Views
View Answer
4 - 1 Completing the Accounting Cycle MATCHING 228.Match the items below by entering the appropriate code letter in the space provided. A.WorksheetF.Common Stock B.Permanent accountsG.Current assets C.Closing entriesH.Operating cycle D.Income SummaryI.Long-term liabilities E.Reversing entryJ.Correcting entries _____              1.Obligations that a company expects to pay after one year. _____              2.A part of owners' equity in a corporation. _____              3.An optional tool which.
12 Views
View Answer
4 - 1 Completing the Accounting Cycle MULTIPLE CHOICE QUESTIONS 38.Preparing a worksheet involves a.two steps. b.three steps. c.four steps. d.five steps. 39.The adjustments entered in the adjustments columns of a worksheet are a.not journalized. b.posted to the ledger but not journalized. c.not journalized until after the financial statements are prepared. d.journalized before the worksheet is completed. 40.The information for preparing a trial.
11 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 206 As Mel Smith was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows: (a)A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited.
13 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 210 Compute the dollar amount of current assets based on the following account balances. Accounts Receivable$22,000Accumulated Depreciation—Equipment27,000Cash8,400Equipment93,000Prepaid Rent7,000Short-term Investments15,000 Ex. 211 The financial statement columns of the worksheet for Miracle Max at December 31, 2014, are as follows: MIRACLE MAX Worksheet For the Year Ended December 31, 2014   Income Statement       .
10 Views
View Answer
4 - 1 Completing the Accounting Cycle aEx. 213 Reisner Company prepared the following adjusting entries at year end on December 31, 2014: (a)Interest Expense......................................150 Interest Payable..................................150 (b)Unearned Revenue....................................1,500 Service Revenue.................................1,500 (c)Insurance Expense....................................1,200 Prepaid Insurance................................1,200 (d)Interest Receivable....................................100 Interest Revenue.................................100 (e)Supplies Expense.....................................250 Supplies........................................250 (f)Salaries and Wages Expense............................3,000 Salaries and Wages Payable........................3,000 Ex. 213(Cont.) In an effort to minimize errors in recording transactions, Reisner Company utilizes reversing entries. Instructions Prepare reversing.
9 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 201 Identify which of the following accounts would appear in a post-closing trial balance. Accumulated Depreciation—EquipmentOwner’s Drawings Depreciation ExpenseService Revenue Interest PayableEquipment Ex. 202 The trial balances of Orton Company follow with the accounts arranged in alphabetic order. Analyze the data and prepare (a) the adjusting entries and (b) the.
11 Views
View Answer
4 - 1 Completing the Accounting Cycle Ex. 197 At March 31, account balances after adjustments for Vizzini Cinema are as follows: Account Balances Accounts(After Adjustment) Cash$  11,000 Supplies4,000 Equipment50,000 Accumulated Depreciation—Equipment12,000 Accounts Payable5,000 Owner’s, Capital20,000 Owner’s, Drawings12,000 Ticket Revenue65,000 Service Revenue53,000 Advertising Expense18,000 Supplies Expense19,000 Depreciation Expense4,000 Rent Expense28,000 Salaries and Wages Expense24,000 Utilities Expense5,000 Instructions Prepare the closing journal entries for Vizzini Cinema. Ex. 198 Presented below is an adjusted trial balance.
9 Views
View Answer
5 - 1 Accounting for Merchandising Operations 21.Inventory is classified as a current asset in a classified balance sheet. 22.Gain on sale of equipment and interest expense are reported under other revenues and gains in a multiple-step income statement. 23.The gross profit section for a merchandising company appears on both the multiple-step and single-step.
8 Views
View Answer
5 - 1 Accounting for Merchandising Operations TRUE-FALSE STATEMENTS 1.Retailers and wholesalers are both considered merchandisers. 2.The steps in the accounting cycle are different for a merchandising company than for a service company. 3.Sales minus operating expenses equals gross profit. 4.Under a perpetual inventory system, the cost of goods sold is determined each time a sale.
16 Views
View Answer
4 - 1 Completing the Accounting Cycle aEx. 214 On December 31, 2014 the adjusted trial balance of the Yellin Personnel Agency shows the following selected data: Accounts Receivable, $8,000 Service Revenue, $60,000 Interest Expense, $10,500 Interest Payable, $3,500 Utilities Expense, $4,800 Accounts Payable, $2,700 Analysis indicates that adjusting entries were made for (a) $8,000 of employment commission revenue earned.
11 Views
View Answer

Can't find what you're looking for ?

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