Question 1

Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet.

Accepted Answer

The answer of Discuss the benefits of the worksheet. Explain...

Question 2

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the book value of the equipment after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000, residual value...

Question 3

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

Accepted Answer

The answer of What is the purpose of adjusting entries?...

Question 4

On the worksheet, the Income Statement debit column totaled $1000 and the credit column totaled $1,100. What is the amount of Net Income?
$ ________

Accepted Answer

The answer of On the worksheet, the Income Statement debit...

Question 5

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000, residual value...

Question 6

To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

Accepted Answer

This is true. Net income or net loss is calculated by subtracting total expenses from total revenues. The difference between the credit and debit columns of the income statement section will show the net income or net loss, and it will be placed on the smaller side of the worksheet.

Question 7

The order of the steps to prepare the worksheet are:
A)prepare the trial balance, complete adjustments, prepare the adjusted trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.
B)complete the adjustments, prepare the adjusted trial balance, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.
C)extend the totals to the Income Statement and Balance Sheet columns, prepare the trial balance, complete the adjustments, prepare the adjusted trial balance.
D)prepare the adjusted trial balance, complete the adjustments, prepare the trial balance, extend the respective totals to the Income Statement and Balance Sheet columns.

Accepted Answer

The correct sequence for preparing a worksheet begins with preparing the trial balance, followed by completing adjustments, then preparing the adjusted trial balance, and finally extending the respective totals to the Income Statement and Balance Sheet columns. This process ensures that all transactions are recorded, adjustments are made for accruals and deferrals, and financial statements accurately reflect the company's financial position.

Question 8

What are the differences between depreciation expense and accumulated depreciation?

Accepted Answer

The answer of What are the differences between depreciation expense...

Question 9

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown. Only a partial trial balance is provided. Use T accounts to show the adjustments.

Accepted Answer

The answer of Provide the adjusting entries to account for...

Question 10

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the depreciation adjustment amount after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000, residual value...

Question 11

The adjusted trial balance columns:
A)help to ensure the ledger is still in balance.
B)help to identify any errors that may have been made during adjustment.
C)show updated account balances to aid in preparation of the financial statements.
D)All of the above are correct.

Accepted Answer

The adjusted trial balance columns help to ensure that the ledger is still in balance, identify any errors made during adjustment, and show updated account balances to aid in the preparation of the financial statements. Therefore, all three choices are correct.

Question 12

On the worksheet, the Balance Sheet debit column totaled $1,500 and the credit column totaled $1,400. What is the amount of Net Loss?
$ ________

Accepted Answer

The answer of On the worksheet, the Balance Sheet debit...

Question 13

Given the income statement columns and the balance sheet columns of the worksheet, prepare an income statement for the month of October 31, 20XX, for the company.

Accepted Answer

The answer of Given the income statement columns and the...

Question 14

Given the income statement columns and the balance sheet columns of the worksheet, prepare a balance sheet dated December 31, 200x, for Baur Company.

Accepted Answer

The answer of Given the income statement columns and the...

Question 15

Revenue is recorded when earned, and expenses are recorded only when paid.

Accepted Answer

This statement is incorrect. The revenue recognition principle states that revenue should be recognized when earned, regardless of when payment is received. The matching principle states that expenses should be recorded when they are incurred, not necessarily when they are paid.

Question 16

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment. It is now the end of March and there have been no adjustments to the account balance. Determine the amount of expense to record at the end of March.
$ ________

Accepted Answer

The answer of On January 1 the Prepaid Insurance account...

Question 17

The worksheet is the first financial statement prepared.

Accepted Answer

The income statement is the first financial statement prepared. The worksheet is a document used to organize and summarize financial information before preparing the financial statements.

Question 18

The company pays $2,000 per 5 day work week. The total expenses as of Friday, April 27 were $8,000. What would be the month's total expenses as of April 30 (assuming no pay is earned over the weekend)?
$ ________

Accepted Answer

The answer of The company pays $2,000 per 5 day...

Question 19

The debits must equal credits on the adjusted trial balance columns of the worksheet.

Accepted Answer

This is one of the fundamental principles of double-entry accounting, where every transaction affects at least two accounts and the total debits must always equal the total credits. The adjusted trial balance is used to ensure that all the accounts have been correctly updated and the trial balance error-free before preparing the financial statements.

Question 20

On November 30, the balance in the Supplies account was $1000. During December additional supplies were purchased of $200. On December 31, there was $700 worth of Supplies on hand. What would be the adjustment for the month of December for Supplies?
$ ________

Accepted Answer

The answer of On November 30, the balance in the...

Quiz 4: The Accounting Cycle Continued

Discuss the benefits of the worksheet. Explain how the financial reports are prepared from the worksheet.

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the book value of the equipment after the first year assuming straight-line depreciation? $ ________

What is the purpose of adjusting entries? Discuss the effect of not preparing adjusting entries on various accounts.

On the worksheet, the Income Statement debit column totaled $1000 and the credit column totaled $1,100. What is the amount of Net Income? $ ________

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation? $ ________

To compute net income or net loss, the debit and credit columns of the income statement section of the worksheet are totaled, and the difference is placed on the smaller side.

The order of the steps to prepare the worksheet are:

What are the differences between depreciation expense and accumulated depreciation?

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown. Only a partial trial balance is provided. Use T accounts to show the adjustments.

Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the depreciation adjustment amount after the first year assuming straight-line depreciation? $ ________

The adjusted trial balance columns:

On the worksheet, the Balance Sheet debit column totaled $1,500 and the credit column totaled $1,400. What is the amount of Net Loss? $ ________

Given the income statement columns and the balance sheet columns of the worksheet, prepare an income statement for the month of October 31, 20XX, for the company.

Given the income statement columns and the balance sheet columns of the worksheet, prepare a balance sheet dated December 31, 200x, for Baur Company.

Revenue is recorded when earned, and expenses are recorded only when paid.

On January 1 the Prepaid Insurance account had a balance of $6,000 that represented 6 months' worth of advance payment. It is now the end of March and there have been no adjustments to the account balance. Determine the amount of expense to record at the end of March. $ ________

The worksheet is the first financial statement prepared.

The company pays $2,000 per 5 day work week. The total expenses as of Friday, April 27 were $8,000. What would be the month's total expenses as of April 30 (assuming no pay is earned over the weekend)? $ ________

The debits must equal credits on the adjusted trial balance columns of the worksheet.

On November 30, the balance in the Supplies account was $1000. During December additional supplies were purchased of $200. On December 31, there was $700 worth of Supplies on hand. What would be the adjustment for the month of December for Supplies? $ ________