Question 1

On November 30, the balance in the Supplies account was $500. During December additional supplies were purchased of $200. On December 31, there was $200 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...

Question 2

The worksheet is the first financial statement prepared.

Accepted Answer

The first financial statement typically prepared is the income statement, as it provides the necessary information to then prepare the balance sheet and statement of cash flows.

Question 3

What are the differences between depreciation expense and accumulated depreciation?

Accepted Answer

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

Question 4

On the worksheet, the difference between the debits and credits in the income statement columns would be the ending owner's equity balance.

Accepted Answer

The income statement summarizes the revenues and expenses of a business over a period of time, and the difference between the two is the net income or loss. The ending owner's equity balance is the total value of the assets of the business minus the total value of its liabilities. The net income or loss is added to or subtracted from the beginning owner's equity balance to arrive at the ending owner's equity balance.

Question 5

On a worksheet, the income statement debit column totals $11,000 and the credit column totals $9,500 following statements is correct?
A) The company had a net loss of $1,500.
B) The company had a net income of $1,500.
C) The company's revenues were greater than expenses.
D) None of the above is correct.

Accepted Answer

The company had a net loss of $1,500 because the income statement debit column (expenses) exceeds the credit column (revenues) by $1,500, indicating expenses were higher than revenues.

Question 6

Equipment was purchased for $50,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the annual depreciation adjustment amount after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $50,000, residual value...

Question 7

On the worksheet, the Balance Sheet debit column totaled $1,400 and the credit column totaled $2,000. What is the amount of Net Loss?
$ ________

Accepted Answer

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

Question 8

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 9

Equipment was purchased for $50,000, 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 third year assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $50,000, residual value...

Question 10

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 serve multiple purposes: they ensure the ledger remains balanced after adjustments, help identify any errors made during the adjustment process, and provide updated account balances that are crucial for the accurate preparation of financial statements.

Question 11

The company pays $5,000 per 5-day work week. The total expenses as of Friday, April 27 were $12,000. 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 $5,000 per 5-day work...

Question 12

On the worksheet, the Income Statement debit column totaled $13,000 and the credit column totaled $15,000. What is the amount of Net Income?
$ ________

Accepted Answer

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

Question 13

When Balance Sheet credits exceed the debits on the worksheet:
A) a net loss has occurred.
B) a net income has occurred.
C) an error has been made.
D) the income statement credits exceed the debits on the worksheet.

Accepted Answer

The answer of When Balance Sheet credits exceed the debits...

Question 14

The capital balance amount shown in the balance sheet column of the worksheet represents:
A) the beginning capital plus net income interest.
B) the beginning capital plus net income less withdrawal.
C) the beginning capital less withdrawals plus any investments to capital during the period.
D) the beginning capital plus any investments to capital that occurred during the period.

Accepted Answer

The answer of The capital balance amount shown in the...

Question 15

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 16

Equipment was purchased for $50,000, 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 6 years assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $50,000, residual value...

Question 17

On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,200. Which of the following statements is correct?
A) The company had a net income of $1,200.
B) The company had a loss of $1,200.
C) The company's expenses were greater than revenues.
D) There is a $1,200 error.

Accepted Answer

The answer of On a worksheet, the balance sheet debit...

Question 18

Withdrawals would most likely be found in which column of the worksheet?
A) Income Statement
B) Balance Sheet
C) Trial Balance
D) Owner's Equity Statement.

Accepted Answer

The answer of Withdrawals would most likely be found in...

Question 19

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

Accepted Answer

In accounting, the adjusted trial balance must have equal debits and credits as it reflects all adjustments made to the accounts, ensuring the ledger is balanced before financial statements are prepared.

Question 20

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?...

Quiz 4: The Accounting Cycle Continued

On November 30, the balance in the Supplies account was $500. During December additional supplies were purchased of $200. On December 31, there was $200 worth of Supplies on hand. What would be the adjustment for the month of December for Supplies? $ ________

The worksheet is the first financial statement prepared.

What are the differences between depreciation expense and accumulated depreciation?

On the worksheet, the difference between the debits and credits in the income statement columns would be the ending owner's equity balance.

On a worksheet, the income statement debit column totals $11,000 and the credit column totals $9,500 following statements is correct?

Equipment was purchased for $50,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the annual depreciation adjustment amount after the first year assuming straight-line depreciation? $ ________

On the worksheet, the Balance Sheet debit column totaled $1,400 and the credit column totaled $2,000. What is the amount of Net Loss? $ ________

The order of the steps to prepare the worksheet are:

Equipment was purchased for $50,000, 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 third year assuming straight-line depreciation? $ ________

The adjusted trial balance columns:

The company pays $5,000 per 5-day work week. The total expenses as of Friday, April 27 were $12,000. What would be the month's total expenses as of April 30 (assuming no pay is earned over the weekend)? $ ________

On the worksheet, the Income Statement debit column totaled $13,000 and the credit column totaled $15,000. What is the amount of Net Income? $ ________

When Balance Sheet credits exceed the debits on the worksheet:

The capital balance amount shown in the balance sheet column of the worksheet represents:

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. $ ________

Equipment was purchased for $50,000, 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 6 years assuming straight-line depreciation? $ ________

On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,200. Which of the following statements is correct?

Withdrawals would most likely be found in which column of the worksheet?

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

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