Exam 3: Adjusting Accounts and Preparing Financial Statements

Based on the following information, what would be the total on the Credit side of a post closing trial balance, assuming all accounts have a normal balance? Cash \ 6,754 Dividends \ 2,000 Accounts receivable 13,733 Consulting fees earned 13,718 Office supplies 2,625 Rent expense 3,673 Land 37,153 Salaries expense 6,642 Office equipment 14,535 Telephone expense 560 Accounts payable 6,463 Miscellaneous expense 280 Common stock 54,490 Retained Earnings ?

Adjusting entries are used to record the effects of internal economic (financial) transactions and events.

On June 30, 2011, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31, 2011 for Apricot would include:

What is the purpose of a post-closing trial balance?

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.

A company has 20 employees who each earn $500 per week for a 5-day week that begins on Monday. December 31 of 2011 is a Monday and all 20 employees worked that day. a. Prepare the required adjusting journal entry to record accrued salaries on December 31, 2011. b. Prepare the journal entry to record the payment of salaries on January 4, 2012.

On January 1, Able Company purchased equipment costing $195,000 with an estimated salvage value of $15,000, and an estimated useful life of eight years. What is the amount that should be recorded as depreciation on December 31?

Topflight Company had $1,500 of store supplies at the beginning of the current year. During this year, Topflight purchased $8,250 worth of store supplies. On December 31, $1,125 worth of store supplies remained. Calculate the amount of Topflight Company's store supplies expense for the current year.

The ______________ refers to the steps in preparing financial statements for users.

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 appropriate journal entry to close income summary?

A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?

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:

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 post-closing trial balance is prepared

The alternative method of accounting for prepayments

Reebok's net income was $180,000; its total assets were $1,050,000; and its net sales were $3,500,000. Calculate the company's profit margin ratio.

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:

Adjusting entries:

The difference between the cost of an asset and the accumulated depreciation for that asset is called

Intangible assets are long-term resources that benefit business operations, usually lack physical form and have uncertain benefits.