Question 1

Prepare the necessary correcting entry for each of the following.
a. A payment on account of $840 was debited to Accounts Payable $480 and credited to Cash $480.
b. The collection of Accounts Receivable of $680 was recorded as a debit to Cash $680 and a credit to Service Revenue $680.
,

Accepted Answer

The answer of Prepare the necessary correcting entry for each...

Question 2

The following items were taken from the financial statements Wyatt Company. (All dollars are in thousands.)
  
2018 net income was 1,000 and dividends paid were $700.
Instructions
Prepare a classified balance sheet in good form as of December 31, 2018.

Accepted Answer

The answer of The following items were taken from the...

Question 3

The operating cycle of a company is the average time that is required to go from cash to

Accepted Answer

A)   sales in producing revenues.
B)   cash in producing revenues.
C)   inventory in producing revenues.
D)   accounts receivable in producing revenues. B

Question 4

Identify which of the following are temporary accounts of Sabrina Company.
(1) Retained Earnings
(2) Dividends
(3) Equipment
(4) Accumulated Depreciation
(5) Depreciation Expense

Accepted Answer

The answer of Identify which of the following are temporary...

Question 5

The process of transferring net income (or loss) for the period to Retained Earnings is accomplished by making ______________ entries.

Accepted Answer

The answer of The process of transferring net income (or...

Question 6

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

Accepted Answer

A) True 
 B)False

Question 7

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

Accepted Answer

A) True 
 B)False

Question 8

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

Accepted Answer

A)   analyzing transactions.
B)   journalizing and posting adjusting entries.
C)   preparing a post-closing trial balance.
D)   posting to ledger accounts.

Question 9

After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to

Accepted Answer

A)   the beginning retained earnings reported on the retained earnings statement.
B)   the amount of the retained earnings reported on the balance sheet.
C)   zero.
D)   the net income for the period.

Question 10

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018: $\begin{array}{lr}
\text { Accounts payable } & 18,000 \
\text { Accounts receivable } & 11,000 \
\text { Accumulated depreciation - equipment } & 28,000 \
\text { Advertising expense } & 21,000 \
\text { Cash } & 15,000 \
\text { Common stock } & 42,000 \
\text { Dividends } & 14,000 \
\text { Depreciation expense } & 12,000 \
\text { Insurance expense } & 3,000 \
\text { Note payable, due 6/30/19 } & 70,000\\text { Prepaid insurance (12-month policy) } & 6,000 \
\text { Rent expense } & 17,000 \
\text { Retained earnings (1/1/18) } & 60,000 \
\text { Salaries and wages expense } & 32,000 \
\text { Service revenue } & 133,000 \
\text { Supplies } & 4,000 \
\text { Supplies expense } & 6,000 \
\text { Equinment } & 210,000
\end{array}$ What is the amount that would be reported for stockholders' equity at December 31, 2018?

Accepted Answer

A)   $158,000
B)   $144,000
C)   $130,000
D)   $102,000

Question 11

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Accepted Answer

A) True 
 B)False

Question 12

Under IFRS

Accepted Answer

A)   companies can apply fair value to property, plant, and equipment and natural resources.
B)   companies can apply fair value to property, plant, and equipment but not to natural resources.
C)   companies can apply fair value to neither property, plant, and equipment nor natural resources.
D)   companies can apply fair value to natural resources but not to property, plant, and equipment.IFRS.

Question 13

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

Accepted Answer

A)   debit Cash, $820; credit Accounts Receivable, $820.
B)   debit Cash, $540 and Accounts Receivable, $280; credit Service Revenue, $820.
C)   debit Cash, $540 and Service Revenue, $280; credit Accounts Receivable, $820.
D)   debit Accounts Receivable, $820; credit Cash, $540 and Service Revenue, $280.

Question 14

On December 31, 2018 the adjusted trial balance of the Yellin Personnel Agency shows the following selected data:
Accounts Receivable, $8,000
Service Revenue, $60,000
Interest Expense, $10,500
Interest Payable, $3,500
Utilities Expense, $4,800
Accounts Payable, $2,700
Analysis indicates that adjusting entries were made for (a) $8,000 of employment commission revenue earned but not billed, (b) $3,500 of accrued but unpaid interest, and (c) $2,700 of utilities expense accrued but not paid.
Instructions
(a) Prepare the closing entries at December 31, 2018.
(b) Prepare the reversing entries on January 1, 2019.
(c) Enter the adjusted trial balance data in T-accounts. Post the entries in (a) and (b) and rule and balance the accounts.
(d) Prepare the entries to record (1) the collection of the accrued commission on January 8, (2) payment of the utility bill on January 10, and (3) payment of all the interest due ($4,000) on January 15.
(e) Post the entries in (d) to the temporary accounts.
(f) What is the interest expense for the month of January 2019?

Accepted Answer

The answer of On December 31, 2018 the adjusted trial...

Question 15

What is the term used to describe the owner's equity section of a corporation? (b) Identify the two owners' equity accounts in a corporation and indicate the purpose of each.

Accepted Answer

The answer of What is the term used to describe...

Question 16

The two optional steps in the accounting cycle are preparing

Accepted Answer

A)   a post-closing trial balance and reversing entries.
B)   a worksheet and post-closing trial balances.
C)   reversing entries and a worksheet.
D)   an adjusted trial balance and a post-closing trial balance.

Question 17

Under IFRS and under GAAP, current assets are listed in  IFRS.

Accepted Answer

The answer of Under IFRS and under GAAP, current assets...

Question 18

The purpose of the post-closing trial balance is to

Accepted Answer

A)   prove that no mistakes were made.
B)   prove the equality of the balance sheet account balances that are carried forward into the next accounting period.
C)   prove the equality of the income statement account balances that are carried forward into the next accounting period.
D)   list all the balance sheet accounts in alphabetical order for easy reference.

Question 19

The balance in the income summary account before it is closed will be equal to

Accepted Answer

A)   the net income or loss on the income statement.
B)   the beginning balance in the retained earnings account.
C)   the ending balance in the retained earnings account.
D)   zero.

Question 20

The income statement for the year 2018 of Fugazi Co. contains the following information: $\begin{array}{lr}\text { Revenues }&&\$70,000\\text { Expenses: }\
\text { Salaries and Wages Expense } & \$ 45,000 \
\text { Rent Expense } & 12,000 \
\text { Advertising Expense } & 10,000 \
\text { Supplies Expense } & 6,000 \
\text { Utilities Expense } & 2,500 \
\text { Insurance Expense } & 2,000\\text { Total expenses }&&77,500\\text { Net income }&&\$7,500
\end{array}$ After the revenue and expense accounts have been closed, the balance in Income Summary will be

Accepted Answer

A)   $0.
B)   a debit balance of $7,500.
C)   a credit balance of $7,500.
D)   a credit balance of $70,000.

Exam 4: Completing the Accounting Cycle

Prepare the necessary correcting entry for each of the following. a. A payment on account of $840 was debited to Accounts Payable $480 and credited to Cash $480. b. The collection of Accounts Receivable of $680 was recorded as a debit to Cash $680 and a credit to Service Revenue $680. ,

The following items were taken from the financial statements Wyatt Company. (All dollars are in thousands.) 2018 net income was 1,000 and dividends paid were $700. Instructions Prepare a classified balance sheet in good form as of December 31, 2018.

The operating cycle of a company is the average time that is required to go from cash to

Identify which of the following are temporary accounts of Sabrina Company. (1) Retained Earnings (2) Dividends (3) Equipment (4) Accumulated Depreciation (5) Depreciation Expense

The process of transferring net income (or loss) for the period to Retained Earnings is accomplished by making ______________ entries.

If a worksheet is used, financial statements can be prepared before adjusting entries are journalized.

The balance of the depreciation expense account will appear in the income statement debit column of a worksheet.

The step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is

After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to

After a worksheet has been completed, the statement columns contain all data that are required for the preparation of financial statements.

Under IFRS

Merriweather Post Pavillion received a $820 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $280 and a credit to Service Revenue $280. The correcting entry is

What is the term used to describe the owner's equity section of a corporation? (b) Identify the two owners' equity accounts in a corporation and indicate the purpose of each.

The two optional steps in the accounting cycle are preparing

Under IFRS and under GAAP, current assets are listed in IFRS.

The purpose of the post-closing trial balance is to

The balance in the income summary account before it is closed will be equal to