Exam 4: The Accounting Cycle Continued

Using the following data, make the adjustments, and complete the worksheet for one month. a. Equipment costing $750 with a residual value of $150 has an expected life of 12 months. b. Accrued salaries of $100. c. Supplies ledger balance $900, supplies used $400.

The beginning capital balance used on the Statement of Owner's Equity is obtained from:

When historical cost is used in the accounting records, the book value of the asset is:

Equipment with a cost of $150,000 has an accumulated depreciation of $100,000. What is the historical cost of the equipment?

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? $ ________

The inside columns on the financial statements are used to:

If the adjustment for Supplies used during the period was not made:

Accumulated Depreciation is found on which of the following financial statements?

The estimated value of an item at the end of its useful life is:

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? $ ________

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)? $ ________

Financial statements are prepared from the:

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

Which of the following would cause a contra-asset to be credited and an expense debited?

What type of account is Salaries Payable?

Total wages per week are $4,800. You need to accrue $4,000 of wages. The adjusting entry would include which of the following?

On the worksheet, the difference between the debits and credits in the income statement columns would be the net income or net loss for the period.

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

The worksheet is a formal statement.

Prepaid Rent is an asset with a normal balance of a debit.