Exam 3: Adjusting Accounts and Preparing Financial Statements

ABC Co.leased a portion of its store to another company for eight months beginning on October 1,2011 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 31,2011 would include:

Adjustments must be entered in the journal and posted to the ledger after the work sheet is prepared.

Profit margin is defined as:

Which of the following assets is not depreciated?

A trial balance prepared after adjustments have been recorded is called a(n):

An unadjusted trial balance is a listing of accounts and their balances prepared before adjustments are recorded.

On December 31,the balance in the Prepaid Insurance account was $4,500,which is the remaining balance of a twelve-month policy purchased on October 31 in the current year.How much did this policy originally cost?

Ben and Jerry's had total assets of $149,501,000,net income of $6,242,000 and net sales of $209,203,000.Its profit margin was 2.98%.

A company had revenue of $250,000,rent expense of $10,000,utility expense of $3,500,salary expense of $18,500,depreciation expense of $9,000,advertising expense of $4,500,dividends in the amount of $18,000,and a beginning balance in retained earnings of $17,900.What is the balance in retained earnings for the end of the period?

How is a classified balance sheet different from an unclassified balance sheet? List the order of the usual classifications on a classified balance sheet.

The matching principle requires that expenses get recorded in the same accounting period as the revenues that are earned as a result of the expenses,not when cash is paid.

On January 1,Denton Mabrey College received $1,200,000 in Unearned Tuition Revenue from its students for the spring semester,which spans four months beginning on January 2.What amount of tuition revenue should the college recognize on January 31?

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

In general journal form,record the December 31 adjusting entries for the following transactions and events.Assume that December 31 is the end of the annual accounting period. a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of a three-year fire insurance policy that was purchased on October 1 of the current year b. The Office Supplies account has a debit balance of $400; a year-end inventory count reveals $80 of supplies still on hand c. On November 1 of the current year, Rent Earned was credited for $1,500. This amount represented the rent earned for a three-month period beginning November 1 d. Estimated depreciation on office equipment is $600 e. Accrued salaries amount to $400

A company had $7,000,000 in net income for the year.Its net sales were $11,200,000 for the same period.Calculate its profit margin.