Exam 4: The Accounting Cycle Continued

Residual value is the:

Every amount needed for the income statement can be found on the worksheet.

After the adjustment for depreciation has been made, the original cost of the equipment:

The spreading or allocating of the cost of a long-term asset is called depreciation.

On November 1, Duane paid $24,000 in advance for a year's rent. The November 30 adjusting entry for rent expense should include a:

The order of the steps to prepare the worksheet are:

Which of the following accounts would appear on the balance sheet?

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

Equipment with a cost of $200,000 has an accumulated depreciation of $100,000. What is the book value of the equipment?

Unlimited Doors showed supplies available during the year of $1,900. A count of the supplies on hand as of October 31 is $800. The adjusting entry for Store Supplies would include:

An adjustment for Prepaid Rent would indicate:

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

The accumulated depreciation will appear in which of the following worksheet statement columns?

Rent expired at the end of an accounting period requires an adjustment.

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

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

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.

Depreciation Expense is debited when recording the depreciation for the period.

When an asset expires or is used up, it becomes an expense.

The worksheet contains a trial balance.