Exam 3: Adjusting Accounts and Preparing Financial Statements

A company had revenue of $550,000,rent expense of $100,000,utility expense of $10,000,salary expense of $125,500,depreciation expense of $39,000,advertising expense of $40,200,dividends in the amount of $183,000,and an ending balance in retained earnings of $402,300.What is the beginning retained earnings for the period?

The following unadjusted and adjusted trial balances were taken from the current year's accounting system for High Point,Inc. In general journal form,present the six adjusting entries that explain the changes in the account balances from the unadjusted to the adjusted trial balance.

Match the following terms with the appropriate definition. -     Straight-line depreciation 

What are the types of adjusting entries used for accrued expenses and accrued revenues?

Below is Adventure Travel's adjusted trial balance as of the end of its annual accounting period: a. Prepare the necessary closing entries. b. Prepare a post-closing trial balance.

Based on the following information,what would be the ending balance in the Retained Earnings Account,assuming all accounts have a normal balance? Cash \ 6,754 Dividends \ 2,000 Accounts receivable 13,733 Consulting fees earned 13,71 Office supplies 2,625 Rent expense 3,67 Land 37,153 Salaries expense 6,64 Office equipment 14,535 Telephone expense 560 Accounts payable 6,463 Miscellaneous expense 280 Common stock 54,490 Retained Earnings ?

Awn Services paid a dividend of $8,700 during the current year.The entry to close the dividend account at the end of the year is:

Under the cash basis of accounting,no adjustments are made for prepaid,unearned and accrued items.

The cash basis of accounting requires that revenues be recognized when cash payments from customers are received.

Nike's net income was $780,000; its net assets were $5,200,000; and its net sales were $9,000,000.Calculate its profit margin ratio.

The following information is available for the Travis Travel Agency.After the closing entries have been journalized and posted,what will be the balance in the Retained Earnings account? Total revenues \ 125,000 Total expenses 60,000 Retained earnings 80,000 Dividends 15,000

Match the following terms with the appropriate definition. -     Accrued revenues 

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:

Profit margin = ___________________ divided by net sales.

Match the following terms with the appropriate definition. -     Profit margin 

The following items appeared on a company's December 31 work sheet for the current period.Based on the following information,what is net income for the current period?

A post-closing trial balance is a list of permanent accounts and their balances from the ledger after all closing entries are journalized and posted.

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

The adjusted trial balance of Sara's Web Services follows: SARA'S WEB SERVICES Adjusted Trial Balance December 31 Cash \ 1,170 Supplies 1,930 Prepaid insurance 600 Computer equipment 20,600 Accumulated depreciation - Computer equipment \5 ,400 Accounts payable 325 Common stock 3,000 Retained earnings 10,925 Dividends 4,800 Services revenue 21,720 Salaries expense 6,920 Depreciation expense 2,000 Rent expense 1,200 Supplies expense 800 Utilities expense 950 Insurance expense 400 Totals \ 41,370 \ 41,370 (a)Prepare the closing entries for Sara's Web Services. (b)What is the balance of the retained earnings account after the closing entries are posted?

Match the following terms with the appropriate definition. -     Accrual basis accounting