On a worksheet, when the total of the income statement debit column exceeds the total of the income statement credit column: |
the company experienced a net loss for the period. |
the company experienced a net loss for the period. |
debit of $120,000 for Equipment in the balance sheet column. |
Baxter Company’s worksheet had the following balances: Income Statement columns, debit of $37,000 and credit of $49,000 and Balance Sheet columns, debit of $85,000 and credit of $73,000. The net income or net loss for the period is |
$12,000 net income. |
The worksheet for Booth Company shows the following in the financial statement columns: |
Debit Retained Earnings $30,000; credit Income Summary $30,000. |
Income Summary has a credit balance of $12,000 after closing revenues and expenses. The entry to close Income Summary is |
debit Income Summary $12,000, credit the Retained Earnings account $12,000. |
Q 4.6: |
debit Income Summary, $23,000, and credit Retained Earnings, $23,000. |
Q 4.8: |
debit Accounts Receivable $350 and credit Unearned Service Revenue $350. |
Q 4.9: |
Cash is overstated and Supplies is understated. |
Q 4.10: |
Post to ledger accounts, prepare an adjusted trial balance, prepare reversing entries. |
Q 4.11: |
debit Accounts Receivable $100 and credit Service Revenue $100. |
Q 4.12: |
Debit Prepaid Insurance $50, credit Cash $50. |
Q 4.13: |
Debit Cash $125, debit Inventory $125, credit Accounts Payable $250. |
Q 4.14: |
long-term investments; current liabilities; stockholders’ equity |
Q 4.15: |
$23,000. |
Q 4.17: |
Salaries and Wages Expense $3,400. |
Q 4.18: |
liquidity. |
Q 4.19: |
Debit Salaries and Wages Payable; credit Salaries and Wages Expense. |
Q 4.20: |
Debit Salaries and Wages Expense $600, credit Cash $600. |
On June 9, Lanai Company journalized and posted a $450 purchase of equipment on account as a debit to Cash for $450 and a credit to Equipment. To correct the error a ____ will be made to the Equipment account as part of the correcting entry. |
Debit |
Q 4.29: |
Intangible assets have no physical substance. |
Q 4.30: |
preparation of a trial balance |
Q 4.31: |
Long-term liabilities |
Q 4.31: |
intangible assets. |
In post closing trial balance, |
there are no balances in the temporary accounts. |
To ascertain the accumulated undistributed earnings of the corporation at the end of an accounting period, Pioneer must prepare the _________ trial Balance |
post-closing |
Q 4.21: |
transposed numbers when copying entries from the journal to the ledger. |
Q 4.22: |
Only Interest Payable should be included. |
Q 4.23: |
trial balance |
Q 4.24: |
after posting closing entries |
Q 4.25: |
The post-closing trial balance will balance, although debits and credits will be overstated. |
Q 4.26: |
Wages Expense |
Q 4.27: |
unposted transactions |
The account balances for the permanent accounts, Cash and Equipment, will ________ from the adjusted trial balance through the post-closing trial balance. |
remain constant |
At the end of each quarter, accountants should prepare a trial balance, journalize and post adjusting entries, and then do which of the following? |
prepare an adjusted trial balance |
Merriweather Post Pavilion received an $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash of $280 and a credit to Service Revenue of $280. What should be the correcting entry? |
debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820. |
Q 4.38: |
adjusting entries and financial statements |
Q 4.39: |
False |
Q 4.40: |
Credit column of the balance sheet columns |
Q 4.41: |
It is not used as a basis for posting to ledger accounts. ; It is not a journal. |
________ accounts will not appear in post-closing trial balance |
Temporary |
A worksheet is a ________ accounting record. |
Temporary |
Q 4.44: |
Compute the net income or net loss. |
Q 3.1: |
when a company provides a service. |
The expense recognition principle requires that expenses be recognized in the period when they are |
matched with revenues. |
Q 3.3: |
recognize revenues and expenses properly under accrual accounting. |
Q 3.4: |
into months, quarters or years, defined for convenience. |
For each adjusting entry, |
an income statement account is debited or credited and a balance sheet account is either debited or credited. |
Deferrals occur when |
cash is received before revenue is earned. |
Q 3.7: |
cash is received before revenues are earned. |
Q 3.8: |
expensing a part of the cost of a building |
Q 3.9: |
Record Revenues that will be paid for in a subsequent period. |
Q 3.10: |
$420. |
Q 3.11: |
Insurance Expense for $400 and a credit to Prepaid Insurance of $400. |
Q 3.12: |
$17,000. |
Q 3.13: |
Assets will be overstated and net income will be overstated. |
Q 3.14: |
depreciation expense. |
Q 3.15: |
$50 of the cost of the equipment was allocated to August. |
Q 3.16: |
September |
Q 3.17: |
25 |
Q 3.18: |
liabilities are understated. |
Q 3.19: |
preparing all adjusting entries. |
Q 3.20: |
The entry reflects $5,000 payment of wages and salaries for the current period and $3,000 for wages and salaries accrued previously. |
An adjusting entry always affects |
an income statement account and a balance sheet account. |
an income statement account and a balance sheet account. |
The revenue recognition principle dictates that revenue should be recognized in the accounting records |
The revenue recognition principle dictates that revenue should be recognized in the accounting records |
when services are performed. |
Adjusting entries are made to ensure that |
expenses are recognized in the period in which they are incurred. revenues are recorded in the period in which services are performed. balance sheet and income statement accounts have correct balances at the end of an accounting period. |
The principle or assumption dictating that expenses be matched with revenues is the |
expense recognition principle. |
The accumulated depreciation account |
is a contra asset account with a credit balance. |
What is the impact on the financial statements if the adjusting entries for prepaid expenses are omitted? |
Balance sheet accounts are overstated and income statement accounts are understated. |
The adjusting entry for accrued expenses affects |
expenses and liabilities. |
An adjusting entry that debits an asset and credits a revenue is necessary for |
accrued revenues. |
The adjusted trial balance is prepared |
after the adjusting entries are prepared and posted to the ledger. |
(3-3) Primo Industries collected $104,327 from customers in 2015. Of the amount collected, $25,480 was from services performed in 2014. In addition, Primo performed services worth $40,781 in 2015, which will not be collected until 2016. Primo Industries also paid $70,148 for expenses in 2015. Of the amount paid, $29,388 was for expenses incurred on account in 2014. In addition, Primo incurred $42,391 of expenses in 2015, which will not be paid until 2016. |
Cash Basis Net INcome:34,179 Accrual-Basis: 36477 |
A debit is |
an entry on the left side. |
Q 2.2: |
assets. |
Q 2.3: |
Accounts payable. |
dividend is |
an equity account. |
The first step in the recording process is to |
analyze the transaction. |
Q 2.6: |
on the line following each journal entry. |
In journalizing a transaction, |
indent the title of the credit account. |
Q 2.8: |
providing easy comparison of debit and credit amounts. |
Q 2.9: |
paying for a service in advance |
A chart of accounts |
lists all accounts used by a company. |
If Cash had a beginning balance of $3,000 and the only transactions affecting Cash are Common Stock that is issued for $5,000, and cash is used to purchase equipment for $4,000, then the ending balance in the Cash account is |
$4,000. |
Q 2.12: |
it is possible the wrong accounts were used in the journal entry. |
Q 2.13: |
decreased the number of shares outstanding. |
A credit will increase |
Service Revenue. |
Q 2.15: |
is balanced by taking the difference between the total credits and total debits. |
Q 2.16: |
is called the book of original entry. |
Irregular entries represent |
an unethical misstatement of an entry. |
On the trial balance, accounts are listed |
in the order they appear in the ledger. |
Q 2.19: |
credit Cash, debit Rent Expense. |
Q 2.20: |
The title is capitalized to indicate that it is a specific account name. |
Q 2.22: |
journal |
Q 2.23: |
It would decrease the Cash account as a credit and increase the Supplies account as a debit. |
Q 2.24: |
an account. |
Q 2.25: |
that customers owe $12,500 to the company. |
Q 2.27: |
a way of depicting the basic form of an account |
Which of the following statements about an account is true? |
An account is an individual accounting record of increases and decreases in specific asset, liability, and owner’s equity items. |
Accounts that normally have debit balances are |
assets, dividends, and expenses. |
Which of the following is not part of the recording process? |
preparing a trial balance. |
Entering transaction data in the journal is known as |
journalizing. |
A complete journal entry includes all of the following except |
the balance of the accounts in the entry. |
The order of the accounts in the ledger is |
assets, liabilities, common stock, dividends, revenues, expenses. |
A ledger |
is a collection of the entire group of accounts maintained by a company. |
The Cash account had a normal balance of $48,000 at the beginning of the month. During the month, Langdon Company received cash payments from its customers of $22,000 and made cash payments of $8,000 for expenses incurred and $6,000 on account. The balance in the Cash account after posting these transactions is |
$56,000 debit balance. ;This assumes that the Cash account starts with a normal debit balance ($48,000) and includes the cash receipts ($22,000) on the debit side of the account, thus increasing the account balance, and then including the cash payments (total of $14,000) on the credit side of the account, thus decreasing the account balance. |
The total debit column totals $131,000; $131,000 = $5,000 (Cash) + $40,000 (Salaries and Wages Expense) + $10,000 (Rent Expense) + $15,000 (Dividends) + $61,000 (Equipment). The normal balance for Assets, Expenses, and Dividends, is a debit. |
131,000 ; The total debit column totals $131,000; $131,000 = $5,000 (Cash) + $40,000 (Salaries and Wages Expense) + $10,000 (Rent Expense) + $15,000 (Dividends) + $61,000 (Equipment). The normal balance for Assets, Expenses, and Dividends, is a debit. |
Kim Leppard invested $7,274 cash in the business in exchange for common stock. |
A= + Stockh= + |
Paid office rent of $1,382. |
A= – S= – |
Performed consulting services and billed a client $6,838. |
A= + S= + |
Declared and paid a $873 cash dividend. |
A= – S= – |
Which of the following is not a step in the accounting process? |
verification. |
Internal users of accounting information include all of the following except |
investors. |
The intent of the Sarbanes Oxley Act of 2002 is to reduce unethical corporate behavior, to decrease likelihood of future corporate scandals, and to increase severity of penalties for fraudulent financial activity. The intent of the Sarbanes Oxley Act of 2002 is to |
reduce unethical corporate behavior;decrease likelihood of future corporate scandals;increase severity of penalties for fraudulent financial activity |
The historical cost principle states that |
assets should be recorded at their cost. |
A business organized as a separate legal entity under state corporation law having ownership divided into transferable shares of stock is a |
corporation. |
Combining the activities of Kellogg and General Mills would violate the |
economic entity assumption. |
Patterson Company reported stockholders’ equity of $75,000 at the beginning of the year. During the year, the company recognized net income of $15,000. Stockholders made an additional investment of $10,000 at midyear and received a $5,000 dividend at year-end. The stockholders’ equity at the end of the year is |
Ending stockholders’ equity = beginning stockholders’ equity ($75,000) + investments ($10,000) + net income ($15,000) – dividends ($5,000).; $95,000. |
Which of the following events is not recorded in the accounting records? |
An employee is terminated. |
Which of the following statements is false? |
An income statement represents the revenues, expenses, changes in stockholders’ equity, and resulting net income or net loss for a specific period of time. |
Which of the following is not one of the career opportunities in accounting? |
personal accounting |
Combo with -Acc 201 Ch 4 Completing Account Cycle- and 3 others
Share This
Unfinished tasks keep piling up?
Let us complete them for you. Quickly and professionally.
Check Price