Question 1

Depreciation Expense is debited when recording the depreciation for the period.

Accepted Answer

A) True 
 B)False

Question 2

Withdrawals would most likely be found in which column of the worksheet?

Accepted Answer

A) Income statement 
B) Balance sheet 
C) Adjustments 
D) Withdrawals would not appear on the work sheet.

Question 3

Provide the adjusting entries to account for the differences between the trial balance amounts and the adjusted trial balance amounts for the accounts shown.Only a partial trial balance is provided.Use T accounts to show the adjustments.
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\underline{\text {Trial Balance}}$ $\quad $ $\quad $$ \underline{\text {Adjusted Trial Balance}}$
$\begin{array}{c}
\begin{array}{lll}
\
\text {Supplies}\
\text {Prepaid Rent}\
\text {Equipment}\
\text {Accum. Depr. - Equip}\
\text {Service Fees}\
\text {Depreciation Expense}\
\text {Telephone Expense}\
\text {Salaries Expense}\
\text {Rent Expense}\
\text {Supplies Expense}
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\
500 \
1,100 \
10,000\
\
\
\
\
150 \
500\
\
\
\end{array}
\begin{array}{lll}
\underline{\text {Credit}}\
\
 \
 \
\
3,000\
1,200\
\
\
 \
\
\
\
\end{array}
\begin{array}{lll}
\underline{\text {Debit}}\
\
500 \
300 \
10,000\
\
\
400\
150\
600\
800\
250\
\

\end{array}
\begin{array}{r}
\underline{\text {Credit}}\
\
 \
 \
\
3,000\
1,200\
\
\
 \
\
\
\
\end{array}
\end{array}$

Accepted Answer

The answer of Provide the adjusting entries to account for...

Question 4

Depreciation of equipment was recorded twice this period.This would:

Accepted Answer

A) overstate expenses and overstate assets. 
B) overstate expenses and understate assets. 
C) understate expenses and overstate assets. 
D) understate expenses and understate assets.

Question 5

The adjustment for accrued wages included the entire pay period,some of which occurs next month.This would:

Accepted Answer

A) understate the liabilities. 
B) overstate the liabilities. 
C) overstate net income. 
D) None of these are correct.

Question 6

The accounts added below the trial balance,on the worksheet,are always decreasing.

Accepted Answer

A) True 
 B)False

Question 7

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

Accepted Answer

A) True 
 B)False

Question 8

The accumulated depreciation will appear in which of the following worksheet statement columns?

Accepted Answer

A) The Income Statement debit 
B) The Income Statement credit 
C) The Balance Sheet debit 
D) The Balance Sheet credit

Question 9

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000,residual value is...

Question 10

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the depreciation adjustment amount after the first year assuming straight-line depreciation?
$ ________

Accepted Answer

The answer of Equipment was purchased for $20,000,residual value is...

Question 11

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal.This resulted in:

Accepted Answer

A) understated assets. 
B) overstated net income. 
C) overstated liabilities. 
D) understated capital.

Question 12

Which of the following is most likely to result in an adjusting entry at the end of the period?

Accepted Answer

A) Payment of two months' insurance in advance 
B) Payment of one month's rent 
C) Owner's withdrawals 
D) Payment for routine maintenance on the company van

Question 13

Great Lakes Modeling Agency purchased $900 of office furniture at the beginning of the month.Depreciation Expense at the end of the month is $200.What is the balance of the Office Furniture account at the end of the month?

Accepted Answer

A) $700 
B) $1,000 
C) $200 
D) $900

Question 14

Given the income statement columns and the balance sheet columns of the worksheet,prepare a balance sheet dated December 31,200x,for Baur Company.

Accepted Answer

The answer of Given the income statement columns and the...

Question 15

An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 16

On a worksheet,the balance sheet debit column total is $1,000 and the credit column total is $2,000.Which of the following statements is correct?

Accepted Answer

A) The company had a net income of $1,000. 
B) The company had a loss of $1,000. 
C) The company's expenses were greater than revenues. 
D) None of the above are correct.

Question 17

For each account listed identify the category it belongs to,the normal balance (debit or credit),and the financial statement the account appears.
 $$\begin{array} { | l | c | c | c | } 
\hline \text { Account } & \text { Category } & \text { Normal Balance } & \begin{array} { c } 
\text { Financial } \
\text { Statement }
\end{array} \
\hline \text { 0. Cash } & \text { Asset } & \text { Debit } & \text { Balance Sheet } \
\hline \text { 1. Depreciation Expense } & & & \
\hline \text { 2. Accumulated } & & & \
\hline \text { Depreciation } & & & \
\hline \text { 3 Wages Expense } & & & \
\hline \text { 4. Office Supplies } & & & \
\hline \text { 5. Office Supplies Expense } & & & \
\hline \text { 6. Wages Payable } & & & \
\hline \text { 7. Prepaid Rent } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each account listed identify the category...

Question 18

Residual value is the:

Accepted Answer

A) estimated value of the asset when it is purchased. 
B) estimated value of the asset at the end of its useful life. 
C) cost of the asset. 
D) allocation of the cost.

Question 19

The adjusted trial balance columns:

Accepted Answer

A) help to ensure the ledger is still in balance. 
B) help to identify any errors that may have been made during adjustment. 
C) show updated account balances to aid in preparation of the financial statements. 
D) All of the above are correct.

Question 20

Unlimited Doors showed supplies available during the year of $1,900.A count of the supplies on hand as of October 31 is $800.The adjusting entry for Store Supplies would include:

Accepted Answer

A) a debit to Store Supplies Expense for $800. 
B) a credit to Store Supplies Expense for $800. 
C) a debit to Store Supplies for $1,100. 
D) a debit to Store Supplies Expense for $1,100.

Exam 4: The Accounting Cycle Continued

Depreciation Expense is debited when recording the depreciation for the period.

Withdrawals would most likely be found in which column of the worksheet?

Depreciation of equipment was recorded twice this period.This would:

The adjustment for accrued wages included the entire pay period,some of which occurs next month.This would:

The accounts added below the trial balance,on the worksheet,are always decreasing.

The amount of supplies used during the period would be shown in the adjustment columns of the worksheet.

The accumulated depreciation will appear in which of the following worksheet statement columns?

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation? $ ________

Equipment was purchased for $20,000,residual value is $2,000 and it is expected that the useful life is 10 years.What is the depreciation adjustment amount after the first year assuming straight-line depreciation? $ ________

Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal.This resulted in:

Which of the following is most likely to result in an adjusting entry at the end of the period?

Great Lakes Modeling Agency purchased $900 of office furniture at the beginning of the month.Depreciation Expense at the end of the month is $200.What is the balance of the Office Furniture account at the end of the month?

Given the income statement columns and the balance sheet columns of the worksheet,prepare a balance sheet dated December 31,200x,for Baur Company.

An important function of the worksheet is for the accountant to find and correct errors before the financial statements are prepared.

On a worksheet,the balance sheet debit column total is $1,000 and the credit column total is $2,000.Which of the following statements is correct?

Residual value is the:

The adjusted trial balance columns:

Unlimited Doors showed supplies available during the year of $1,900.A count of the supplies on hand as of October 31 is $800.The adjusting entry for Store Supplies would include: