Question 1

The following are the steps in the accounting cycle.List them in the order in which they are completed:
Prepare adjusted trial balance.
Post transactions.
Prepare an unadjusted trial balance.
Journalize transactions.
Prepare the financial statements.
Close the temporary accounts.
Adjust the ledger accounts.
Prepare a post-closing trial balance.
Analyze transactions.

Accepted Answer

The answer of The following are the steps in the...

Question 2

What is the purpose of a post-closing trial balance?

Accepted Answer

The answer of What is the purpose of a post-closing...

Question 3

Use the following table to indicate the impact of the following errors made during the adjusting entry process.Use a "+" for overstatements,a "-" for understatements and a "0" for no effect.The first one is provided as an example:

Accepted Answer

The answer of Use the following table to indicate the...

Question 4

On December 14 Bench Company received $3,700 cash for consulting services that will be performed in January.Bench records all such prepayments in a liability account.Prepare a general journal entry to record the $3,700 cash receipt.

Accepted Answer

The answer of On December 14 Bench Company received $3,700...

Question 5

On December 31,Connelly Company had performed $5,000 of management services for clients that had not yet been billed.Prepare Connelly's adjusting entry to record these fees earned.

Accepted Answer

The answer of On December 31,Connelly Company had performed $5,000...

Question 6

A company issued financial statements for the year ended December 31 but failed to include the following adjusting entries:
A.Accrued service fees earned of $2,200.
B.Depreciation expense of $8,000.
C.Portion of office supplies (an asset) used,$3,100.
D.Accrued salaries of $5,200.
E.Revenues of $7,200,originally recorded as unearned,have been earned by the end of the year.
Determine the correct amounts for the December 31 financial statements by completing the following table:

Accepted Answer

The answer of A company issued financial statements for the...

Question 7

During the year,Able Co.purchased $23,750 worth of supplies.At the end of the year,the supplies expense on the adjusted trial balance was $29,340 and the balance sheet showed a balance of $810 in the supplies account.What was the supplies balance at the beginning of the year?

Accepted Answer

The answer of During the year,Able Co.purchased $23,750 worth of...

Question 8

July 31,2013,the end of the quarter,is on a Wednesday.Employees get paid each Friday for the five-day work week.Abel Co.has five employees who earn $100 per day each.Make the necessary adjusting journal entry for June 30.

Accepted Answer

The answer of July 31,2013,the end of the quarter,is on...

Question 9

Describe the two alternate methods used to account for prepaid expenses.

Accepted Answer

The answer of Describe the two alternate methods used to...

Question 10

On December 31,2012,a company forgot to record $7,000 of depreciation on office equipment.What would be the effect on the assets,net income,and equity when it comes to the 2012 financial statements?

Accepted Answer

The answer of On December 31,2012,a company forgot to record...

Question 11

July 31,2013,the end of the quarter is on a Wednesday.Employees get paid each Friday for the week worked.Abel Co.has five employees who earn $100 per day each.Assuming the proper adjusting journal entry was made on June 30,prepare the journal entry to record the payment of wages on August 2.

Accepted Answer

The answer of July 31,2013,the end of the quarter is...

Question 12

Calculate the current ratio in each of the following separate cases.

Accepted Answer

The answer of Calculate the current ratio in each of...

Question 13

Describe a work sheet and explain why it is useful.

Accepted Answer

The answer of Describe a work sheet and explain why...

Question 14

Listed below are a number of accounts.Use the table below to classify each account.Indicate whether it is a temporary or permanent account,whether it is included in the income statement or balance sheet,and if it is closed at the end of the accounting period and,if so,how it is closed.The first one is done as an example.

Accepted Answer

The answer of Listed below are a number of accounts.Use...

Question 15

The calendar year-end adjusted trial balance for Acosta Co.follows:
  Required:
a.Prepare a classified year-end balance sheet.(Note: A $7,000 installment on the long-term note payable is due within one year.)
b.Calculate the current ratio.

Accepted Answer

The answer of The calendar year-end adjusted trial balance for...

Question 16

Given the table below, indicate the impact of the following errors made during the adjusting entry process. Use a "+" followed by the amount for overstatements, a "-" followed by the amount for understatements and a "0" for no effect. The first one is done as an example. 
Ex. Failed to recognize that $600 of unearned revenues, which were previously recorded as liabilities, had been earned by year-end.
1.  Failed to accrue salaries expense of $1,200. 
2.  Forgot to record $2,700 of depreciation on office equipment. 
3.  Failed to accrue $300 of interest on a note receivable.

Accepted Answer

The answer of Given the table below, indicate the impact...

Question 17

During its first year of operations,Able Co.purchased $39,600 worth of supplies.Atthe end of the year,the balance sheet showed a balance of $1,760 in the Supplies account.Prepare the necessary adjusting entry.

Accepted Answer

The answer of During its first year of operations,Able Co.purchased...

Question 18

Prepare an income statement from the adjusted trial balance of Hanson Storage.

Accepted Answer

The answer of Prepare an income statement from the adjusted...

Question 19

Day Co.leases an office to a tenant at the rate of $5,000 per month.The tenant contacted Day and arranged to pay the rent for December 2014 on January 8,2015.Day agrees to this arrangement.
a.Prepare the journal entry that Day must make at December 31,2014,to record the accrued rental revenue.
b.Prepare the journal entry to record the receipt of the rent on January 8,2015.

Accepted Answer

The answer of Day Co.leases an office to a tenant...

Question 20

During the current year ended December 31,clients paid fees in advance for accounting services amounting to $25,000.These fees were recorded in an account called Unearned Accounting Fees.If $3,500 of these fees are still unearned on December 31 of this year,prepare the December 31 adjusting entry.

Accepted Answer

The answer of During the current year ended December 31,clients...

Quiz 3: Adjusting Accounts for Financial Statements