Exam 2: A Review of the Accounting Cycle

A common business transaction that would not affect the amount of owners' equity is

The following balances have been excerpted from Edwards' balance sheets: Edwards Company paid or collected during 2013 the following items: The interest revenue on the income statement for 2013 was

The records of McGarrett Corp.show the following information: Prepare journal entries to adjust the books of McGarrett Corp.at December 31,2013.

The following ten items are independent of each other.For each item,indicate the amount of any cash flow that occurs or state that no cash flow resulted from the item.

Failure to record the expired amount of prepaid rent expense would not

The following summary balance sheet account categories of Sun Company increased during 2013 by the amounts shown: Assets .....................$178,000 Liabilities ...........................$54,000 Capital Stock ............$120,000 Additional Paid-in Capital ....$12,000 The only change to retained earnings during 2013 was for $26,000 of dividends.What was Sun Company's net income for 2011?

The use of computers in processing accounting data

The information listed below was obtained from the accounting records of Williams Company as of December 31,2013,the end of the company's fiscal year. Prepare journal entries to adjust the books of Williams Company at December 31,2013.

Which of the following would typically be considered a source document?

Carbon Company's accounting records provided the following information (all amounts in thousands of dollars): All assets and liabilities of the firm are reported in the schedule above.Working capital of $92 remained unchanged from 2012 to 2013.Net income in 2011 was $64.No dividends were declared during 2013 and there were no other changes in owners' equity.Total long-term liabilities at the end of 2013 would be

Richards Company,a calendar-year company,sells magazine subscriptions to subscribers.The magazine is published semiannually and is shipped to subscribers on April 15 and October 15.Only one-year subscriptions for two issues are accepted.Subscriptions received after the March 31 and September 30 cutoff dates are held for the following publication.Cash is received evenly during the year and is credited to deferred subscription revenue.During 2013,$3,600,000 of cash was received from customers.The beginning balance for 2013 of the deferred subscription revenue account was $750,000.What is Richards' December 31,2013,deferred subscription revenue balance?

The debit and credit analysis of a transaction normally takes place when the

Presented below is the December 31 trial balance of Cassini Studios.

The following balances have been excerpted from Edwards' balance sheets: Edwards Company paid or collected during 2013 the following items: The salary expense on the income statement for 2013 was

At the beginning of the fiscal year,office supplies inventory amounted to $600.During the year,office supplies amounting to $8,800 were purchased.This amount was debited to office supplies expense.An inventory of office supplies at the end of the fiscal year showed $400 of supplies remaining.The beginning of the year balance is still reflected in the office supplies inventory account.What is the required amount of the adjustment to the office supplies expense account?

The last step in the accounting cycle is to

Beginning and ending Accounts Receivable balances were $28,000 and $24,000,respectively.If collections from clients during the period were $80,000,then total services rendered on account were apparently

On August 1,a company received cash of $9,324 for one year's rent in advance and recorded the transaction on that day as a credit to rent revenue.The December 31 adjusting entry would include

A routine collection on a customer's account was recorded and posted as a debit to Cash and a credit to Sales Revenue.The journal entry to correct this error would be

Schroeder Co.had the following transactions pertaining to the fiscal year ended October 31,2011. Provide the appropriate journal entries to record the preceding transactions.Adjust the accounts at year-end assuming that no entries have been made between the transaction date and year-end and assuming that: