Exam 3: Adjusting Accounts for Financial Statements

The 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 year?

Discuss the two alternate methods used to account for prepaid expenses.

Adjusting entries may affect only balance sheet accounts.

A(n)_______________________ is a listing of all of the accounts in the ledger with balances before adjustments are made.

Failure to record depreciation expense will overstate the asset and understate the expense.

For a prepaid expense,the adjusting entry would:

The adjusted trial balance contains information pertaining to:

At year-end,the accountant for Del Carpio Diaper Service noted the following errors in the trial balance: Using the form below,indicate if each error would cause the trial balance to be out of balance,the amount of any imbalance,and if a correcting entry is required.

The cost of an asset less its accumulated depreciation is called the _____________.

If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees,the end-of-period adjusting entry to record the portion of these fees that has been earned is:

On July 1,2015,Nuby Trucking Company purchased a new truck for $52,000.The truck is estimated to have a useful life of six years and a residual value of $10,000.How much depreciation expense will be recorded for the truck during the year ended December 31,2015?

A balance sheet that places the assets above the liabilities and equity is called a(n):

Identify and explain the reasons for the order in which financial statements are prepared.

Unearned revenue is reported in the financial statements as:

The accounting principle that requires revenue to be reported when earned is the:

A company's fiscal year must correspond with the calendar year.

Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are called

Internal transactions have no effect on the accounting equation.

Using the schedule below,indicate the impact of the following errors made during the adjusting entry process.Use a "+" for overstatements,a "-" for understatements,and a "0" for no effect.

Which of the following does not require an adjusting entry at year-end?