Exam 4: The Accounting Cycle Continued

Given the income statement columns and the balance sheet columns of the worksheet, prepare an income statement for the month of October 31, 20XX, for the company.

Accumulated Depreciation is a contra-asset account found on the balance sheet.

The adjustment for wages earned, but not yet paid is:

The accounts added below the trial balance, on the worksheet, are always decreasing.

Which of the following would be an example of a contra-asset?

A form used to organize and check data before preparing financial reports is known as a(n):

At the start of this year 18 months rent was paid. At the year's end, how will this affect the balance sheet?

On the worksheet, the Balance Sheet debit column totaled $1,500 and the credit column totaled $1,400. What is the amount of Net Loss? $ ________

The adjusted trial balance columns:

An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.

For each account listed identify the category it belongs to, the normal balance (debit or credit), and the financial statement the account appears.

As accumulated depreciation is recorded, the book value:

When historical cost is used to record equipment, it would appear as the:

When making the adjustment for prepaid insurance, instead of writing off only the time that has passed the entire policy was written off. This would:

Original cost of equipment is not adjusted on the worksheet.

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

Which of the following accounts would most likely be depreciated?

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 depreciation adjustment amount after the first year assuming straight-line depreciation? $ ________

The ending figure for capital, used on the balance sheet, will be obtained from:

If an adjustment to Supplies is not made, the balance in the Supplies account will be too low.