Exam 3: Adjusting Accounts for Financial Statements

Depreciation on the company's equipment for 2014 is $24,000.The company prepares and records adjusting entries on a monthly basis.How would the company record the related adjusting entry on December 31,2014?

ABC Co.leased a portion of its store to another company for eight months beginning on October 1,2014,at a monthly rate of $800.This other company paid the entire $6,400 cash on October 1,which ABC Co.recorded as unearned revenue.The journal entry made by ABC Co.at year-end on December 31,2014,would include a:

Failure to record depreciation expense will overstate the asset and understate the expense.

Adjusting entries:

Financial statements are typically prepared in the following order:

In preparing statements from the adjusted trial balance,the balance sheet must be prepared first.

The adjusting entry to record the earned but unpaid salaries of employees at the end of an accounting period is:

Profit margin equals ___________________ divided by net sales.

A company had revenues of $75,000 and expenses of $62,000 and paid $1,000 dividends during the accounting period.Which of the following entries could not be a closing entry for this company?

What is the difference between GAAP and IFRS presentations of the current assets section on the balance sheet?

The current portion of long-term debt is classified with the _________________________.

The Unadjusted Trial Balance columns of a work sheet total $84,000.The Adjustments columns contain entries for the following: Office supplies used during the period,$1,200. Expiration of prepaid rent,$700. Accrued salaries expense,$500. Depreciation expense,$800. Accrued service fees receivable,$400. The Adjusted Trial Balance columns total is:

Kasper Electric has two part-time employees,each of whom earns $200 per day.They are normally paid on Fridays for work completed Monday through Friday of the same week.December 27,2013,was a Friday,and they were paid in full on that day.The employees worked on Monday and Tuesday,December 30 and 31,2013.How would the company record the related adjusting entry on December 31,2013?

Power Electric has two part-time employees; each employee earns $200 per day.They are normally paid on Fridays for work completed Monday through Friday of the same week.April 25,2014,was a Friday,and they were paid in full on that day.The employees worked on Monday,Tuesday,and Wednesday,April 28 through 30,2014,and the related adjusting entry was recorded on April 30,2014.The company paid the two employees for a full week of work on Friday,May 2,2014.How would the company record this transaction?

A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on Monday.If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday,the month-end adjusting entry to record the salaries earned but unpaid is:

The last four steps in the accounting cycle include preparing the adjusted trial balance,preparing financial statements,and recording closing and adjusting entries.

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.

The Income Summary account is used:

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?

In accrual accounting,accrued revenues are recorded as liabilities.